Burnley have been awarded £35m in compensation after a Premier League commission ruled that Everton’s breach of financial rules caused their relegation in 2022 – the largest financial penalty ever imposed on a top-flight club.
The independent disciplinary panel, the same three-man commission that deducted Everton 10 points over the same £19.5m overspend in November 2023, found that “on the balance of probabilities, Everton’s breach of the PSR caused Burnley to be relegated”. Burnley were awarded £26m in damages and a further £9m in interest.
“Burnley awarded £35m after Premier League commission rules Everton's PSR breach caused their relegation in 2022.”
Both clubs presented evidence from experts to simulate the effect of the overspend on Everton’s points total. The commission said it found Burnley’s evidence, which projected a gain of between 3.85 and 7.13 points for the Toffees, “more compelling”.
Everton finished 16th in the 2021-22 season on 39 points, four points above Burnley in 18th. Leeds, who finished 17th, have already agreed a settlement with Everton in September 2025. Leicester City, Nottingham Forest and Southampton were also reported to have considered legal action.
Everton have appealed the ruling, with sources saying they will “robustly and thoroughly” contest it. In a statement, the club said they were “surprised and angered” and “clear in the belief the ruling is fundamentally flawed in both law and fact”. They 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.”
The club, now owned by The Friedkin Group after Farhad Moshiri sold his stake for £25m in December 2024, said it had received assurances from the Premier League that the compensation payment will not affect its current PSR calculations or summer transfer plans. It is not known whether TFG will pursue Moshiri for the damages.
Premier League rules allow clubs to seek compensation from other members if rules are broken and cause them loss. The verdict increases the likelihood of more clubs taking legal action against members who have broken league rules, with the commission noting that had Everton’s points deduction – later reduced to six on appeal – been applied in 2021-22 rather than 2023, Burnley would have stayed up.