**Everton have been ordered to pay Burnley nearly £40m after the Clarets sued them on the grounds of breaching the Premier League’s Profit and Sustainability Regulations (PSR).**
Burnley have argued that if the 10-point deduction received by the Toffees in 2023 for breaching the rules over a three-year period ending in 2022 season – the year they were relegated – had happened earlier, then Everton would have been relegated instead, [as per The Sun](https://www.thesun.co.uk/sport/39364020/everton-legal-dispute-burnley-40m-relegation/?utm_source=sharebar_app&utm_medium=sharebar_app&utm_campaign=sharebar_app_article).
Everton finished 16th in the 2021/22 campaign, just four points above the club owed the substantial sum for successfully suing, which the Clarets present would have seen them survive even with the mitigation from 10 to six points that came in 2024.
Burnley initially chose to sue David Moyes’ side for upwards of £50m in compensation in September 2025, with their lawyers having spent years preparing for the legal battle.
The Premier League’s PSR rules, or the division’s own version of Financial Fair Play, allow clubs to lose no more than £105m over any three-year period.
Further allowances are in place for clubs who are in good financial health.
This differs slightly from how UEFA’s squad cost ratio rules, which require all clubs playing in its competitions to limit expenditure on wages and transfers to 70% of revenue at most.
Both Chelsea and Aston Villa have been sanctioned on these grounds by the European governing body in the past, with Nottingham Forest another top flight club to have breached PSR.
More to follow.