Everton issue a statement, left ‘surprised and angered’ at being ordered to pay a £35m compensation payment to Burnley.
Burnley have won their legal dispute with Everton after the Clarets had sued Everton for breaching Premier League rules.
talkSPORT report that Everton have to pay Burnley £35million, plus interest, having originally sought over £50million after the Toffees were docked 10 points, with that then reduced to a 6 point deduction for a PSR breach in 2023.
Burnley successfully argued they would have stayed up without the rule breach. Everton are set to appeal.
Club statement.
— Everton (@Everton) June 10, 2026
The club said in a statement:
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 & 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.
Sky Sports News correspondent, Geraint Hughes, said: “Profit & Sustainability Rules. It all relates to that. I have to take you back to 2022 to 2024 to quickly explain this.
“Everton, you may recall, in November of 2023, deducted 10 points for breaches of PSR rules. That was reduced on appeal in February 2024 to six points. Evertonians will remember that one. The accounting period it relates to ended in 2022.
“So, Burnley, under Premier League rules, are able to seek compensation from any club if they feel they have suffered losses due to a breach of a Premier League rules, in this case, Everton breaching PSR rules.
“Burnley were relegated in 2022. Their argument is that the Everton PSR breach relates to a period that ended when they were relegated.
“Everton’s counter argument to that was, is that yes it was, but it was during the period, the accounting period hadn’t ended. And nonetheless, at that point in around May, June of 2022, they were completely unaware they have breached Premier League rules. Because you remember the first thing you said, the 10 point deduction came in November of 2023. So that’s all the legalese around it.
“But essentially, Premier League clubs allow for club, in this case, Burnley, to seek compensation for a club that has broken the rules. So Burnley relegated in 2022.
“Clearly, they’re going to feel, had they stayed in Premier League as opposed to being relegated to the championship, there are going to be some financial differences there. So that’s the essence of it.
“Just to remind people again what PSR are, at the moment or at this time. They allow a club over a three-year period to amass a loss of £105 million.
“In this case, where Everton were found to be in breach of those rules, they had exceeded that £105 limit over three years by £19.5 million. That is what it was essentially all about in that period between sort 2022-24 that played out in sort of in the public sphere.
On Everton’s punishment: “Financial. So it’s essentially around the £40 million mark, but that’s a £26 million to be paid to Burnley, plus interest, etc. So it amounts to around the £40 million mark. That is what Burnley have won. They’ve effectively sued.
“Because they’re allowed within the breach of rule, they’re allowed to sue. They’ve sued them. And this Premier League independent commission has come back that, yes, Burnley are correct in their legal argument and that they should be awarded compensation of £40 million.
“Everton clearly not happy with this. And quite a strong statement they’ve released as well. They believe that the judgment is flawed in law, not just flawed, but flawed in law, and that it’s excessive, and also that it’s going to set a very much unwanted and dangerous precedent.
“Yes, it’s in football, we’ve got to break this down into law. What’s happened here is this is the first time this has ever happened.
“This rule, the Premier League rule that allowed Burnley to sue Everton, this is the first time a club has done that. So it’s effectively a test case, a first time. It potentially sets a precedent.
“It is too soon to say it sets a legal precedent this ruling. It does on its own. But Everton have immediately said they will appeal. If you ask me, an appeal will happen. Can I just say the law works at a different pace to many other aspects of life? My best guess would be later this year, at the absolute earliest.
“But the outcome of the appeal could be where this test case, this first case ends and where it could set a legal precedent.
“Everton have warned flawed in law and excessive judgment and a dangerous and unwanted precedent for football.
“That is because we have potentially many other clubs watching this and they could be in the future believe that under Premier League rules they have the right to sue a club for what they perceive as financial losses incurred due to a breach of Premier League rules by another club.
“So that’s where it is. Potentially there are lots of other clubs watching this to see what may happen in the future if they are affected.
“The ruling now, yes, but it will be appealed. When that appeal comes through, that is the moment that we will have what’s called essentially in-law a test case and that is where legal precedent can go from.”