Everton ordered to pay Burnley £35m for breaching financial regulations

Everton were ordered to pay £35.1m compensation to Burnley after breaching profit and sustainability regulations (PSR) in a season in which they remained in the Premier League while Burnley were relegated. The Liverpool club expressed its surprise and outrage at the independent panel's decision and has already filed an appeal, believing the verdict sets a dangerous precedent that could result in a series of legal proceedings between clubs.

In a statement, Everton said: "Everton Football Club is surprised and angered by the decision by the Premier League's Independent Disciplinary Commission to order a payment of compensation to Burnley in relation to Everton's breach of PSR in June 2022. Everton has appealed the decision and is confident that the appeal will be successful."

The club believes the panel's decision is "fundamentally flawed" on both legal and factual grounds. They do not recognize that Burnley's relegation in May 2022 was caused by a sporting advantage gained by Everton due to a breach of profits and sustainability rules, a breach for which they have already received a substantial sporting sanction.


Burnley had sued Everton following their relegation in 2022, finishing four points behind the Merseyside club. They claimed £51 million and £26 million was awarded in compensation, plus a further £9.1 million in interest. Everton argue the punishment is unprecedented and greater than previous fines handed out to clubs such as Chelsea, who were fined £10.75 million for financial breaches under former owner Roman Abramovich, and West Ham in the case of Carlos Tevez.

Everton were found guilty of breaching Premier League profitability and sustainability regulations over a four-year cycle ending in 2022 and were found to have made losses of £19.5m above the allowable limit. In November 2023, the club received a 10-point deduction, reduced to six points following appeal. The same panel that gave Everton the 10-point penalty analyzed Burnley's case.

Everton are categorical that the compensation payment will not affect their summer spending or their reinforcement plans under current owners the Friedkin Group. The PSR breach occurred when Everton were under the control of former owner Farhad Moshiri, but the compensation order is against the club, not the businessman.

Everton also highlighted that they claim to have no knowledge of the PSR breach in 2022 and that although Burnley were relegated in May 2022, the accounting period extended to 30 June. If they knew they were over the limit, they would have the opportunity to sell a player after the season ended. Everton also recalled that they have already suffered a financial penalty, with the six-point deduction causing them to finish two places lower in the table in 2023-24, resulting in a loss of around £6 million. The club believes it is now compliant with PSR regulations.

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