How Arsenal and other Premier League clubs could be impacted after Everton were ordered to pay Burnley nearly £40million in compensation for breaching financial rules
Everton have been ordered to pay Burnley nearly £40million in compensation in what could be a landmark Premier League ruling.
The Toffees were sued over Premier League profitability and sustainability breaches from the 2021-22 season when the Clarets were relegated. Everton were initially deducted 10 points in late 2023 for financial misdemeanours, although this was later reduced to six points on appeal a few months later.
Everton finished four points above 18th-placed Burnley in 2021-22 but the Lancashire club successfully argued that had the six-point penalty for PSR breaches been applied that season then they would have survived at the Toffees’ expense. Angry Toffees officials have lodged an immediate appeal at what they view as a “flawed” judgement that could set a “dangerous and unworkable precedent for English football”.
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The statement, published on Wednesday, reads: “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.”
The announcement is expected to send shockwaves through the footballing world, especially when you take into consideration the fact that Manchester City are the subject of a FFP investigation of their own. The Premier League revealed in 2023 that City had been charged with more than 115 alleged FFP breaches covering a nine-year period between the 2009/10 and 2017/18 seasons.
A hearing into the charges took place at the end of 2024 and a ruling could come any day now. City deny the charges against them.
According to Premier League rules, if Man City are found guilty of the alleged breaches, then the club faces a possible points deduction or even the threat of expulsion from the Premier League.
Given the ruling involving Burnley and Everton, clubs impacted by Man City’s dominance during the aforementioned seasons – including Arsenal and Liverpool – could now theoretically sue City if they are found guilty of the charges. Football finance expert Kieran Maguire said: “This case has huge implications for Clubs who feel they were disadvantaged by Chelsea’s breach of the Premier League rules, and, IF found guilty, Clubs who may have lost out to Manchester City for trophies and Champions League places. Any sports lawyers thinking of going on holiday may have to postpone them.”
