Everton have been ordered to pay Burnley nearly £40million after losing a legal dispute over their PSR breaches, talkSPORT understands.
The Toffees were deducted an initial 10 points for breaching the Premier League's profit and sustainability rules in the 2021/22 season.
Jaidon Anthony of Burnley competes with Jake O'Brien of Everton during the Premier League match between Everton and Burnley
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Everton have been ordered to pay Burnley nearly £40million over PSR breachesCredit: Getty
Their punishment was implemented during the 2023/24 campaign, with the penalty reduced to six points upon appeal.
Everton were subsequently deducted a further two points for additional breaches.
Record-breaking penalty
Burnley finished 18th and were relegated from the top-flight in the season in which the breaches occurred.
They are now set to receive compensation and interest from the Toffees, who will appeal the ruling.
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The near £40million figure represents a record-breaking compensation agreement.
Everton had been sued by the Clarets after they were relegated to the Championship in 2022.
Their case had centred on the fact that Everton would have been relegated had the points deduction been applied during that season.
Football finance expert and regular talkSPORT guest Stefan Borson has reacted to the news on social media.
Writing on X, Borson said: "Massive news with massive implications.
"I am not surprised Burnley established causation and were awarded something.
A general exterior view of Hill Dickinson Stadium following the Premier League match between Everton and Manchester United
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Everton will appeal against the record-breaking compensation agreementCredit: Getty
"£40m (albeit with interest) looks very high. But if relegation was effectively deemed to have been caused by Everton's overspend, you can get big quite quickly."
He added that he does not expect the decision to impact Everton's ability to spend in the transfer market this summer.
Burnley finished three points from safety in 18th place in the 2021/22 season.
Their relegation to the Championship ended a six-year stay in the top-flight.
Meanwhile, Everton finished just four points above the drop zone as they avoided relegation under Frank Lampard.
Burnley have since twice been promoted back to the Premier League but have suffered an immediate return to the second-tier on each occasion.
Kyle Walker of Burnley competes with Jarrad Branthwaite of Everton during the Premier League match between Everton and Burnley
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Everton finished four points above Burnley in the 2021/22 season as the Clarets were relegatedCredit: Getty
The Toffees also avoided the drop in the 2023/24 season once the points deductions were applied.
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They ended the campaign 14 points above the relegation zone in 15th place.
More to follow.