Premier League side Everton have been ordered to pay Burnley £40million after a legal dispute over PSR breaches in a landmark case
Everton have been ordered to pay Burnley £40million after a legal dispute over PSR breaches in a landmark case.
The Toffees had been slapped with a 10-point deduction by the Premier League in 2023 after falling foul of regulations in the 2021/22 season. However, at the start of 2024, that punishment was then reduced to six points after appeal.
Burnley had argued that if that deduction had occurred during 2021/22 season, it would have been the Toffees that would have faced the drop. Everton narrowly avoided the drop that season, with Burnley crashing out of the Premier League instead, and the Clarets argued they missed out on millions.
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According to The Lawyer, after a hearing that took place in Autumn, Everton has been ordered to pay Burnley compensation and interest of nearly £40m.
Premier League’s rules allow for clubs to seek compensation from other clubs for rule breaches that cause them loss. However, the report adds that Everton plan to appeal that verdict.
It states Burnley’s legal challenge was built on ‘loss of chance’ – where they would argue Everton’s rule breaches denied them a chance to stay in the Premier League, even if it wasn’t a certainty.
Burnley dropped down to the Championship, which typically brings with it substantial revenue losses. However, they were able to bounce back at the first time of asking under Vincent Kompany.
It wasn’t a great return though, and 12 months later Burnley were back in the Championship. They bounded back again, but were once more relegated from the Premier League this season.
Everton, meanwhile, have remained in the top division throughout that period. And the Toffees even made a push for European football this season, finishing 13th.