Everton have been told they must pay Burnley £35m in compensation and interest for breaching the Premier League’s profit and sustainability regulations during the 2021-22 season, a ruling the club has described as “fundamentally flawed” and immediately appealed.
The decision, handed down by a Premier League commission, awards Burnley £26m in damages and a further £9m in interest after the Clarets successfully argued that Everton’s overspending had directly contributed to their relegation. Burnley finished 18th on 35 points that season, four points behind Everton who stayed up in 16th. Leeds, who finished 17th on 38 points, were reported to have agreed a separate settlement with Everton in September 2025.
“Everton ordered to pay Burnley £35m in damages and interest over PSR breach that contributed to Burnley's relegation.”
Everton had already been punished for the same breach with a 10-point deduction in November 2023, later reduced to six on appeal. That sanction, however, was applied to the 2023-24 season rather than the year of the offence because the Premier League’s accounting period runs to the end of June, preventing in-season penalties. Burnley were given leave to sue by a Premier League tribunal in 2023.
In a strongly worded statement, Everton said they were “surprised and angered” by the decision and intend to “robustly and thoroughly” contest it. “This ruling sets a dangerous and unworkable precedent for English football,” the club argued, “given it is constructed on a principle that a club can be in breach of financial rules at any point in a financial year.” Everton added that the panel “misrepresents the clear evidence” and that an appeal will be successful.
The ruling is likely to send shockwaves through the Premier League. Leicester City, Nottingham Forest and Southampton were also reported to have considered legal action against Everton. More broadly, the decision could encourage other clubs to seek compensation if Manchester City are found guilty of the 115 charges of alleged financial rule breaches between 2009 and 2018 — charges City deny. Chelsea, who were fined £10m after admitting making £47m in secret payments to unregistered agents and third parties, could also face claims.
Everton insisted the compensation payment will not affect their PSR accounts for the current period. “Evertonians can be assured that ownership are focused, with strengthened resolve, on delivering their vision of returning Everton to the top echelon of English football,” the statement concluded. No further comment will be made until the appeal is concluded.