PSR Breach Ruling: Burnley Awarded £35m Compensation Against Everton

Burnley have been awarded around £35 million in compensation after winning a landmark legal case against Everton over the club’s breach of the Premier League’s Profit and Sustainability Rules (PSR).

The ruling stems from Everton’s financial breaches during the 2021/22 assessment period. Burnley argued that had Everton been punished during that season, rather than later, the Merseyside club would have finished below them in the table, allowing Burnley to avoid relegation from the Premier League.

Everton were initially handed a 10-point deduction in 2023 for breaching PSR regulations, although that sanction was later reduced to six points following an appeal.

Burnley had reportedly sought damages in excess of £50 million but are expected to receive about £35 million, with interest added on top.

The decision is believed to be the largest compensation award linked to a PSR dispute in English football.

Everton, however, have reacted furiously to the verdict and confirmed they will challenge the decision.

In a strongly worded statement, the club said: “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 that 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.”