Everton have been ordered to pay Burnley £35m in compensation after a Premier League commission ruled that the club’s breach of financial rules cost Burnley their place in the top flight.
The commission awarded Burnley £26m in damages and a further £9m in interest, the largest financial penalty ever imposed on a Premier League club. The case centred on Everton’s £19.5m overspend against profit and sustainability regulations (PSR) in the three-year period to June 2022.
“Everton ordered to pay Burnley £35m after commission ruled PSR breach caused Clarets' relegation in 2022.”
Burnley argued that had Everton been docked points in the 2021-22 season – when they finished 16th on 39 points, four clear of Burnley in 18th – the Clarets would have stayed up. The commission found Burnley’s evidence “more compelling” and concluded that “on the balance of probabilities, Everton’s breach of the PSR caused Burnley to be relegated”.
The same three-man panel had deducted Everton 10 points in November 2023 for the same breach, later reduced to six on appeal. However, because the accounting period runs to the end of June, the Premier League cannot apply points deductions in the season the offence happens.
Everton, now owned by The Friedkin Group after Farhad Moshiri sold the club for just £25m in December 2024, immediately appealed. In a statement, the club said they were “surprised and angered” by a ruling they believe “is fundamentally flawed in both law and fact”. The statement added that the decision “sets a dangerous and unworkable precedent for English football”.
Sources said Everton will “robustly and thoroughly” contest the ruling. The club received assurances that the payment will not affect their current PSR calculations.
The verdict has wider implications for the Premier League. Leeds are reported to have agreed a settlement with Everton in September 2025, while Leicester City, Nottingham Forest and Southampton were said to have considered legal action. Several clubs have previously won compensation – West Ham United paid Sheffield United a reported £20m in a similar case.
Burnley’s compensation is the largest of its kind, and Everton’s appeal will determine whether the landmark ruling stands.