Burnley’s legal case against Everton over the Clarets’ 2021-22 relegation is set to start this week – almost two years after the Toffees were handed a historic points deduction for being found in breach of the Premier League’s profit and sustainability rules (PSR).
Daily Mail Sport revealed in November 2023 that Burnley – along with Leeds and Leicester – intended to sue the Merseyside club for a combined £300million in compensation, after all three clubs were relegated while Everton kept their spot in the top flight.
The decision made by the three clubs came after Everton was handed a 10-point deduction after being found in breach of PSR limits over a three-year period ending in 2021-22.
The sanction was reduced to six points the following February on appeal, but the club were handed another two-point deduction in April 2024 for another breach of spending regulations during a period ending with the 2022-23 season.
Burnley’s pursuit of legal action against the club comes after the Clarets mulled suing the Premier League itself for compensation, with Burnley arguing that it was the league’s executive failure that Everton were allowed to be in breach in real time.
But focus has shifted to pursuit of their Premier League rivals, with the case set to begin this week at the International Dispute Resolution Centre in London.
Burnley’s relegation legal battle with Everton is set to begin this week in central London
The Clarets were relegated at the end of the 2021-22 season after finishing just four points behind the Toffees
Everton were handed a six-point deduction for their breaches of Premier League spending regulations during a period including that campaign
Burnley will argue that Everton’s financial breaches allowed for a sporting advantage that translated into staying up – with the Clarets condemned to the Championship after finishing just four points behind the club on the final day of the season.
Had the six-point deduction hit Everton during the 2021-22 campaign, Burnley would have been safe with the Toffees relegated in their stead.
As per the i, the Clarets believe they are owed over £50m in compensation from Everton, taking into account revenue lost from their spell in the second tier.
Premier League regulations allow clubs to lose a maximum of £105m over three seasons, with Leicester and Nottingham Forest also falling foul of PSR in recent years.
The club have been preparing for the case for the last year, with legal counsel headed by Amy Wells – who previously served as Everton’s head of legal between 2017 and 2022. Wells went on to join Burnley last year.
The case is due to be held in private, which could mean that the public never learn details of the outcome – although there is not thought to be a timeframe on when a verdict is given.
But any outcome could have a seismic impact on the Premier League’s most high profile litigation – the case against Manchester City’s 115 alleged breaches of spending regulations – with Burnley’s success possibly opening the door for other clubs to seek compensation should the claims against serial champions be proven.
Although a result in that case is thought to be on the horizon, Manchester City inked a mammoth £1billion deal with Puma over the summer which appeared to show the club’s confidence in staying at the very top of European football.
