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Everton lose PSR compensation case brought by Burnley
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Burnley have won £40M in a compensation claim for losses incurred through Everton's PSR breaches.
It's not enough to break the Premier League's Profitability and Sustainability Rules (PSR), be denied any of the most obvious mitigations, and be accused of gaining a 'Sporting Advantage' -- despite having the lowest net spend in the Premier League...
No, Everton must now pay £40M in compensation to Burnley, who have successfully claimed that their relegation in 2022-23 would not have happened if the points deduction Everton were punished with had been applied in that season.
The case went to trial last Autumn. Everton were initially deducted 10 points in late 2023 for breaches of PSR in the 2021-22 Premier League season. This was reduced to 6 points on appeal in early 2024.
Burnley were given leave to sue Everton for compensation after the punitive points deduction was applied because they were relegated to the Championship at the end of the 2021-22 season, part of the period that Everton were charged for breaching PSR.
Everton are understood to be appealing the judgment, which is expected to be published later this week by the Premier League.
Everton have released the following 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.
'No further comment will be made on this matter until the appeal process has been successfully concluded.'
Alan J Thompson 3 Posted 10/06/2026 at 14:05:34
Does anyone know if a variance in the amount to be paid to Burnley was asked for owing to indiscretions by other clubs including Man City?
Mark Taylor 4 Posted 10/06/2026 at 14:09:59
Ouch!
Does anyone know if we have to take that off our revenue for the coming year? If so, that is much of our transfer budget up in smoke.
John Collins 5 Posted 10/06/2026 at 14:12:04
Moshiri will cop for the bill, I reckon.
Frankie McGrath 6 Posted 10/06/2026 at 14:16:10
If this judgment is upheld, it'll mean relegated teams will be suing anyone who breached PSR, left, right and centre.
But why stop there? What about teams who didn't win the league (eg, if Man City are found in breach) or didn't get an European place?
Apparently Man City are watching it all very carefully. It's a joke how Everton are always hit. The ‘deducting points from Everton' became a meme about random unfairness, for goodness sake.
Tony Abrahams 7 Posted 10/06/2026 at 14:44:54
This will surely open the door for both VAR and incompetent (bordering on corruption) refereeing decisions?
Ian Jones 8 Posted 10/06/2026 at 15:03:06
I can't remember the timeline for when Everton got points deducted in the 2022-23 season for misdemeanours in the 2020-21 season but if the investigation into Everton's affairs didn't start until after the start of the 2022-23 season, surely Burnley would still have been relegated in the previous one...???
The above would quite clearly not stand up to too much scrutiny in a court of law... x
Michael Kenrick 9 Posted 10/06/2026 at 15:13:14
The timeline does get convoluted, Ian, but I think you raise a good point -- that the first Independent Commission hearing into Everton's breach (over the 4-year period ending 2021-22) didn't take place untilafter Burnley had been relegated.
But the twisted logic the Premier League has laid down is that, because Everton breached PSR, they therefore by definition gained an unfair sporting advantage. This enabled them, among other things, to do better in that season than Burnley, who suffered a substantial loss when they were relegated.
Ian Bennett 10 Posted 10/06/2026 at 15:13:55
That will be a hit to the 2026 numbers and possibly why caution in the transfer market.
I don't know if it is an allowable expense, I doubt it. Friedkins will be covered on this, and it will come out if Moshiri's pocket youd think.
Remind me how chelsea and city got away with it again
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