Everton were issued a 10-point deduction in the 2023-24 season for breaching Premier League Profit and Sustainability Rules (PSR) during the 2021-22 campaign and have now been ordered to pay Burnley more than £35m in compensation and interest following a successful legal claim.
Chris Beesley and James Smailes Head of All Out Rugby League and Yorkshire sport at Reach plc
16:15, 10 Jun 2026Updated 16:29, 10 Jun 2026
An aerial view of Everton's Hill Dickinson Stadium
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An aerial view of Everton's Hill Dickinson Stadium(Image: Max Tomlinson/Focus Images Limited/SmartFrame)
Everton have released a strongly-worded statement following the emergence of the ruling that Burnley have won their legal case against them.
The Blues were handed a 10-point deduction during the 2023-24 season, subsequently reduced to six points on appeal, for breaching Premier League Profit and Sustainability Rules (PSR) in the 2021-22 campaign.
The Clarets argued that, had the sanction been imposed during the 2021-22 season, then Everton would have been relegated and the East Lancashire side would have retained their Premier League status. Leeds United had also considered their options for a legal challenge before opting not to follow Burnley's path, having finished that season in 17th place, just behind Everton.
It is understood Leeds and Everton agreed a settlement between them in September last year in this matter.
The Blues, who were under Farhad Moshiri's ownership at the time, finished four points ahead of Burnley, who dropped into the Championship alongside Watford and Norwich City.
Following legal action by the Clarets, Everton have now been instructed to pay them compensation and interest totalling more than £35m, reports the Liverpool Echo.
The Blues, now under The Friedkin Group's ownership, have already lodged an appeal against the decision, which the club considers to be "a dangerous and unworkable precedent for English football" and are confident of overturning it.
They have also provided assurances to supporters that any compensation payment made to Burnley would not affect the club's PSR accounts for the current period. Everton's statement reads as follows: "Everton Football Club is surprised and angered by the decision of a Premier League Independent Disciplinary Commission to order a compensation payment to Burnley Football Club in relation to Everton's PSR breach in June 2022. Everton has appealed the decision and is clear in its belief the ruling is fundamentally flawed in both law and fact.
"The club does not recognise the findings of the panel in determining Burnley's relegation from the Premier League in May 2022 was caused by a sporting advantage gained by Everton due to a breach of Profit and Sustainability Rules, for which a substantive sporting sanction has already been received.
"This ruling sets a dangerous and unworkable precedent for English football, given it is constructed on a principle that a club can be in breach of financial rules at any point in a financial year. Everton believes the panel's ruling misrepresents the clear evidence presented by its legal representatives and that an appeal will be successful.
"The club is confident of its ongoing PSR compliance and has also obtained confirmation from the Premier League of its clear position that this ruling should not be the cause of any future PSR sanction. Evertonians can be assured that ownership are focused, with strengthened resolve, on delivering their vision of returning Everton to the top echelon of English football.
"No further comment will be made on this matter until the appeal process has been successfully concluded."
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The complete ruling can now be accessed HERE.