Everton have been ordered to pay Burnley £35m in compensation after a Premier League commission found that the club’s breach of financial rules caused Burnley’s relegation from the top flight in 2022 – the largest financial penalty ever imposed on a Premier League club.
The case, heard by the same three-man panel that deducted Everton 10 points in November 2023 for the same £19.5m overspend, concluded that on the balance of probabilities, Everton’s breach of profit and sustainability regulations (PSR) gave them a sporting advantage that led to Burnley being relegated. Burnley argued that had Everton been deducted six points – the reduced penalty on appeal – during the 2021-22 season rather than in 2023, the Clarets would have stayed up. Everton finished 16th on 39 points, four clear of 18th-placed Burnley.
“Everton ordered to pay Burnley £35m compensation over PSR breach that led to relegation.”
The commission awarded Burnley £26m in damages and a further £9m in interest, a total of £35m. Both clubs submitted expert evidence simulating the effect of the overspend on Everton’s points total, with the panel finding Burnley’s projection – a gain of between 3.85 and 7.13 points – “more compelling”.
Everton immediately appealed, with sources saying they will “robustly and thoroughly” contest the ruling. In a statement, the club said they were “surprised and angered” by a verdict they believe “is fundamentally flawed in both law and fact”. The statement 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 insisted the penalty will not affect their current PSR calculations after receiving assurances from the Premier League.
The Friedkin Group, which took over Everton from Farhad Moshiri in December 2024, said the ruling does not affect summer transfer plans. Moshiri received only £25m from the sale. Leeds United are reported to have settled a similar claim with Everton in September 2025, while Leicester City, Nottingham Forest and Southampton were also reported to have considered legal action.
The verdict raises the stakes for Manchester City, who face 115 charges brought by the Premier League in February 2023, with the hearing concluding a year and a half ago but a verdict still outstanding. As Andy Dunn wrote in the Mirror: “If City are found guilty and punished, the Burnley claim will look like a small one.”