Burnley take Everton to court over PSR breach | OneFootball

The Premier League is bracing itself for another courtroom battle, as Everton and Burnley meet this week in a case that could set a precedent for financial litigation in English football. According to reports by The Athletic, The Clarets are pursuing damages over Everton’s breach of profit and sustainability rules (PSR), claiming it directly contributed to their relegation from the top flight in 2022.

A Breach with Consequences

Everton were found guilty of overspending by £19.5m during the 2021-22 season, a campaign in which they finished four points above Burnley. An independent commission concluded that a “sporting advantage” had been gained, handing Everton an initial 10-point deduction in November 2023, later reduced to six on appeal. Burnley argue that had such a sanction been applied during the season in question, Everton would have been relegated in their place.

The financial impact of relegation is stark. Burnley’s television revenue dropped from £104.9m to £47.8m, while commercial income fell by £3.1m. The club is now seeking compensation believed to be worth as much as £60m for lost earnings.

Central to Burnley’s argument is the doctrine of “loss of a chance”, which allows damages to be claimed even if survival could not be guaranteed. Their contention is simple: Everton’s breach deprived them of a fair opportunity to retain their Premier League status.

Sports lawyer Daniel Gore explains: “Burnley will argue Everton’s breach equated to at least a four-point sporting advantage, precisely the margin that separated the two clubs. Proving causation, however, is far from straightforward.”

Everton’s Defence

Everton, represented by Mark Howard KC, will argue that Burnley cannot conclusively prove that relegation would have been avoided absent the breach. The Merseyside club is expected to highlight that their overspend was not tied to a single player or action, but included infrastructure costs. They may also contend that the breach was only formally established after the season had concluded, complicating claims of direct causality.

However, while Burnley remain the only club to formally pursue action, others, including Leeds, Leicester, and Southampton, had previously signalled their intent. Success for Burnley could embolden rivals to follow suit.

GFN | Finn Entwistle