EPL: Everton hit with £35m ruling over financial rules breach

Everton have been told to pay Burnley £35 million in compensation following a landmark ruling linked to breaches of the Premier League’s profit and sustainability regulations (PSR).

The case, heard by a Premier League commission, relates to the 2021/22 season, when Everton were found to have exceeded permitted financial losses over a three-year assessment period.

Burnley argued that Everton’s breach had a direct impact on their survival in the Premier League and sought damages for the financial consequences of relegation.

The commission awarded the Clarets £26 million in damages, alongside a further £9 million in interest, taking the total compensation to £35 million.

Everton have confirmed they will appeal the decision, insisting the ruling is “fundamentally flawed in both law and fact” and warning it could set a “dangerous and unworkable precedent” for English football.

The club said: “Everton believes the panel’s ruling misrepresents the clear evidence presented by its legal representatives and that an appeal will be successful.”

Burnley and Everton both presented expert evidence estimating the sporting impact of the financial breach, including simulations of how Everton’s league position could have been affected.

The commission concluded that Burnley’s modelling — which projected an impact of between 3.85 and 7.13 points — was “more compelling”.

It further ruled that, on the balance of probabilities, Everton’s PSR breach contributed to Burnley’s relegation.

Despite the financial penalty, the commission clarified that any compensation payment will not affect Everton’s PSR calculations for the current accounting period.

The ruling marks one of the most significant financial adjudications under the Premier League’s regulatory framework, highlighting the growing consequences clubs face for breaches of sustainability rules.