Everton have been ordered to pay Burnley £35m in compensation following a ruling by a Premier League commission over financial rule breaches.
The case relates to the 2021-22 season, during which Everton were found to have broken profit and sustainability regulations across a three-year period.
Burnley argued that Everton’s breach directly impacted their chances of surviving in the top flight that season, and sought compensation for losses linked to their relegation.
The Clarets have been awarded £26m in damages, with an additional £9m in interest bringing the total sum to £35m.
Everton have appealed the decision, with sources indicating the club will “robustly and thoroughly” contest the ruling handed down by the commission.
The club released a statement making clear they were “clear in the belief the ruling is fundamentally flawed in both law and fact.”
Their statement added: “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 also stated: “Everton believes the panel’s ruling misrepresents the clear evidence presented by its legal representatives and that an appeal will be successful.”
The club confirmed that any compensation payment would not impact Everton’s PSR accounts for the current period.
Everton were originally deducted 10 points by the Premier League in November 2023, a sanction later reduced to six points on appeal, which was subsequently applied to the 2023-24 league table.
The heart of Burnley’s case was the argument that had those points been deducted during the 2021-22 season, Burnley would have had a stronger chance of avoiding the drop.
Everton finished 16th in 2021-22 with 39 points, while Leeds ended 17th on 38 points and Burnley were relegated in 18th on 35 points.
Leeds are reported to have agreed a separate settlement with Everton back in September 2025, meaning Burnley’s case proceeded independently.
Because Premier League accounting periods run to the end of June, the league is structurally unable to apply points deductions in the same season an offence occurs.
However, Premier League rules do permit clubs to seek compensation against fellow members where rule breaches are shown to have caused measurable losses.
Leicester City, Nottingham Forest, and Southampton were also reported to have considered pursuing legal action in connection with Everton’s original breach.
The ruling carries broader implications, particularly for Chelsea, who were fined £10m after admitting to £47m in secret payments to unregistered agents and third parties over transfers between 2011 and 2018.
Further reaching consequences could also emerge if Manchester City are found guilty of the 115 charges related to alleged financial rule breaches between 2009 and 2018, with City denying all charges.
Other top-flight clubs could yet argue their own competitive prospects were harmed by financial rule violations, potentially opening the door to further compensation claims across the league.
