Burnley have won the largest financial penalty ever imposed on a Premier League club after a disciplinary commission ruled Everton must pay £35m for breaching profit and sustainability regulations (PSR) in the 2021-22 season. The sum, which includes £26m in damages and £9m in interest, was awarded after Burnley successfully argued that the breach caused their relegation, costing them millions in lost revenue.
The case, heard by the same three-man panel that deducted Everton 10 points in November 2023, centred on the £19.5m overspend. Both clubs presented expert evidence simulating the effect on Everton's points total. The commission found Burnley's projection – that Everton gained between 3.85 and 7.13 points – "more compelling", adding that "on the balance of probabilities, Everton's breach of the PSR caused Burnley to be relegated".
“Burnley win landmark £35m compensation from Everton over PSR breach that caused their relegation.”
Everton finished 16th on 39 points in 2021-22, four clear of Burnley in 18th. Leeds, who were 17th on 38 points, are reported to have 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 and said in a statement they were "clear in the belief the ruling is fundamentally flawed in both law and fact". The club described the verdict as "dangerous and unworkable precedent for English football" and added: "The club does not recognise the findings of the panel in determining Burnley's relegation … was caused by a sporting advantage gained by Everton due to a breach of profit & sustainability rules, for which a substantive sporting sanction has already been received."
Everton, now owned by the Friedkin Group after Farhad Moshiri sold the club in December 2024, insisted the ruling does not affect their summer transfer plans or financial position. The company received assurances from the Premier League that the payment will not form part of current PSR calculations. It is not known whether TFG will pursue Moshiri for the damages.
West Ham United previously paid Sheffield United compensation in a similar case, and the verdict is expected to increase the likelihood of more clubs taking legal action against members who have broken league rules.