In a case that will dig up what has gone on years ago, Burnley have brought forward proceedings against Everton related to their relegation in the 2021-22 season when the Toffees finished four points clear of the Clarets.
Initially five clubs had indicated that they would be suing for compensation related to relegation from the Premier League should Everton be found guilty of breaching Profit & Sustainability Rules (PSR) - Burnley, Leeds United, Leicester City, Southampton and Nottingham Forest. However, it’s only the Turf Moor side who are pursuing this case now.
Everton had received a ten-point deduction in November 2023, and then a further two points later the same season, which under appeal was brought down to eight points in total. These were for PSR breaches in the 2021-22 and 2022-23 campaigns, and though at first the club strongly disputed any wrongdoing, they later admitted they had overspent by £19.5 million even after ‘add-backs’ like community schemes, academy and women’s teams among others that can be deducted from final PSR calculations were accounted for.
The league then appointed an independent commission (IC), which ruled that a sporting advantage had been “inferred” as a result of the financial breach, which then allowed the possibility for relegated clubs to seek damages from Everton, as Burnley are now doing.
Everton FC v Manchester United - Premier League
Everton supporters protest the points deduction levied on the club
Photo by Robbie Jay Barratt - AMA/Getty Images
Everton and Burnley’s legal teams met yesterday for the first time for opening statements at the International Dispute Resolution Centre in London. This was where Manchester City’s case against the Premier League who have laid the now-infamous 115 charges against the then champions was held last year, and while there are no expectations that a verdict will be made public, this resolution is expected in a matter of weeks, not months.
Burnley’s main argument will centre around the points deduction being mistimed, and that if it had happened in the 21/22 season when the alleged breach took place then the Clarets would have survived the drop. They would then go on to claim up to £60m in lost television revenue, sponsorship opportunities and player trading.
Everton’s defence is led by Mark Howard KC, of Brick Court Chambers, who will likely start with getting to Burnley to prove causation - how would reduced spending by Everton result in an improved performance for Burnley.
There is also the matter of timing - Everton’s overspend happened in June 2022 after the season had ended, with the documentation then only getting confirmed when Everton’s PSR calculation for the cycle ending 2021-22 was done a few months later.
LIVERPOOL, ENGLAND - APRIL 06: Dominic Calvert-Lewin of Everton celebrates scoring his team’s first goal during the Premier League match between Everton FC and Burnley FC at Goodison Park on April 06, 2024 in Liverpool, England. (Photo by Matt McNulty/Getty Images)
LIVERPOOL, ENGLAND - APRIL 06: Dominic Calvert-Lewin of Everton celebrates scoring his team’s first goal during the Premier League match between Everton FC and Burnley FC at Goodison Park on April 06, 2024 in Liverpool, England. (Photo by Matt McNulty/Getty Images)
Getty Images
Cases of this nature are unlikely to be resolved cleanly, and likely some sort of out-of-court settlement will be made between the two sides. A relevant recent case came from the Championship where Derby County were sued by Middlesbrough and Wycombe Wanderers, with both sides claiming that Derby’s breaches gave them a competitive advantage.
Boro finished a point behind Derby in the 2018-19 season and missed out on the Championship play-offs, while Wycombe claimed that it was Derby who should have been relegated in 2019-20 instead of them. Both cases were resolved outside of the courts, with Middlesbrough’s accounts showing a £2.7m compensation while there was no reports on how much Wycombe got.
A number of teams will be watching the proceedings eagerly, with the hopes of a precedent being set should City end up being getting a deduction or even proven guilty of any number of their 115 charges. While it it unlikely that Liverpool or any other suitors will then be handed the Premier League title or any other trophies that City won at the team of the breaches, claims of financial compensation could indeed follow.
References:
Everton vs Burnley: Explaining the Premier League’s latest legal row and why it matters - The Athletic, Sep 17, 2025
Everton handed 10-point Premier League penalty for FFP rule breach - The Athletic, Nov 17, 2023
Burnley left fighting lone battle against Everton’s transfer spending - The Athletic, Jul 1, 2022
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