Everton issues strong statement after record fine for PSR breaches is confirmed
Everton have issued a strong response after being hit with a big fine following a legal battle with Burnley over breaking Premier League rules.
Back in late 2023, Everton were docked 10 points for breaking the Premier League’s Profitability and Sustainability Rules (PSR) during the 2021/22 season. After an appeal, this was lowered to six points in early 2024. When that decision was confirmed, Burnley — who got relegated to the Championship in the same season Everton broke the rules — were allowed by a Premier League tribunal to take legal action against Everton.
David Phillips QC, the chairman of the tribunal and commission, also said that Leeds, Leicester, Nottingham Forest, and Southampton could make claims too, but those clubs chose not to take it further. According to Premier League rules, clubs can seek compensation if another club’s rule breach causes them a loss. Because of this, Everton have been ordered to pay nearly £40 million in compensation and interest.
Everton have since said they will appeal the ruling, calling the decision “surprising and angering” and “fundamentally flawed.”
Their statement says, “Everton Football Club is surprised and angered by the Premier League Independent Disciplinary Commission’s decision to order compensation to Burnley for Everton’s PSR breach in June 2022. We have appealed because we believe the ruling is wrong both in law and fact. The club does not accept the panel’s finding that Burnley’s relegation was caused by Everton gaining an unfair sporting advantage, especially since Everton already faced a sporting penalty.”
The statement also adds, “This ruling sets a worrying and unworkable example for English football, as it’s based on the idea that a club can be in breach of financial rules at any time during the financial year. We believe the panel misunderstood the evidence our legal team gave and are confident that our appeal will succeed. Everton remains committed to following PSR rules and has received confirmation from the Premier League that this ruling won’t lead to future sanctions. Fans can rest assured that the club’s owners are focused on bringing Everton back to the top level of English football. We will not comment further until the appeal is finished.”
It’s understood that Burnley argued if Everton’s six-point deduction had happened in 2022 when the breaches occurred, Everton would have been relegated and Burnley would have stayed in the Premier League. Burnley reportedly asked for at least £50 million to cover the difference between their Championship parachute payments and the money they would have earned staying in the Premier League.
However, the £40 million figure was based on the lost chance for Burnley to stay in the top flight and the likelihood of their success. In the 2021-22 season, Everton finished 16th with 39 points—just four points ahead of Burnley, who came 18th.
This is the first time such a big fine has been handed down and it could change how future financial fair play cases are handled. Burnley’s success shows that clubs can make real gains by pushing for compensation when rivals break PSR rules.
Looking ahead, many fans are waiting for news on Manchester City’s ongoing case, where the club faces 115 alleged financial breaches. If City are found guilty, several Premier League clubs are expected to sue for compensation and have already started preparing their legal teams.