Burnley due £35m compensation from Everton after suing for PSR breach | OneFootball

Everton have been ordered to pay Burnley roughly £35m after the Clarets sued them on the grounds of breaching the Premier League’s Profit and Sustainability Rules (PSR).

Burnley have argued that if the 10-point deduction received by the Toffees in 2023 for breaching the rules over a three-year period ending in 2022 – the year they were relegated – had happened earlier, then Everton would have been relegated instead, as per The Sun.

Everton finished 16th in the 2021/22 campaign, just four points above the club owed the substantial sum for successfully suing, which the Clarets present would have seen them survive even with the mitigation from 10 to six points that followed in 2024.

In a statement, they 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 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 PSR, for which a substantive sanction has already been received.”

The club added that it believed Burnley’s action sets a “dangerous and unworkable precedent for English football” on the basis that PSR could be breached at any point in a fiscal year.

Burnley initially chose to sue David Moyes’ side for upwards of £51m in compensation in September 2025, with their lawyers having spent years preparing for the legal battle.

They were awarded £26m in compensation and £9.1m in interest payments, as per The Independent.

The Premier League’s PSR rules, or the division’s own version of Financial Fair Play, allow clubs to lose no more than £105m over any three-year period.

Further allowances are in place for clubs who are in good financial health.

This is to ensure financial stability among the top flight’s clubs and act as a preventative for excessive spending, particularly as the game continued to grow more lucrative.

This differs slightly from how UEFA’s squad cost ratio rules, which require all clubs playing in its competitions to limit expenditure on wages and transfers to 70% of revenue at most.

Both Chelsea and Aston Villa have been sanctioned on these grounds by the European governing body in the past, with Nottingham Forest another top flight club to have breached PSR.

Analysis: latest legal case to be solved before Manchester City’s charges?

Yet another unwanted, albeit necessary legal case study has emerged before the highly anticipated resolution of the 115 charges against six-time Premier League winners Manchester City.

The charges relate to a period from 2009 and 2018, in which the club are accused of allegedly having repeatedly breached financial rules and not co-operated with investigations.

City’s breaches are also said to cover disguising owner funding as sponsorship revenue, as well as failing to fully disclose certain payments made to players and managers.

Yet the case remains without a verdict to this day, meaning it is unknown whether the club’s owner, Sheikh Mansour bin Zayed Al Nahyan of Abu Dhabi’s royal family, is accountable.

City’s owner was first accused in February 2023, yet the chance that Pep Guardiola’s legacy could be tainted by financial issues still looms amid another turn in Everton’s tale.