Everton Ordered to Pay Burnley £35m Over Premier League Financial Rule Breaches

Everton have been ordered to pay £35 million in compensation to Burnley following a ruling relating to breaches of the Premier League’s Profit and Sustainability Regulations (PSR).

The case was heard by an independent Premier League commission and centred on Everton’s financial breaches during the 2021-22 season. The club had previously been found to have exceeded PSR limits over a three-year reporting period.

Burnley argued that Everton’s breach of the regulations negatively affected the competitive balance of the league and ultimately contributed to their relegation from the Premier League at the end of the 2021-22 campaign.

As a result, the commission awarded Burnley £26 million in damages, along with a further £9 million in interest, taking the total compensation package to £35 million.

Everton have confirmed they will appeal the decision and are expected to contest the ruling in full.

In a statement, the club said it remains “clear in the belief the ruling is fundamentally flawed in both law and fact”.

Everton added: “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.”

During the proceedings, both clubs presented expert evidence analysing the potential impact of Everton’s overspending on their league performance. The commission concluded that Burnley’s modelling, which suggested Everton gained between 3.85 and 7.13 points as a result of the breach, was the more persuasive argument.

In its findings, the panel stated that “on the balance of probabilities, Everton's breach of the PSR caused Burnley to be relegated”.

Despite the ruling, any eventual compensation payment will not affect Everton’s PSR calculations for the current financial reporting period while the appeals process continues.