Everton have been ordered to pay Burnley more than £35 million in compensation after a Premier League independent disciplinary commission ruled on the fallout from Everton's profitability and sustainability rules breach tied to the 2021-22 season.
Everton Appeal Premier League PSR Ruling
ESPN, citing PA, reported that Everton immediately appealed the decision and described the ruling as flawed. The club were initially deducted 10 points in late 2023 for financial breaches under former owner Farhad Moshiri, before that penalty was reduced to six points on appeal.
The Burnley case centered on the 2021-22 Premier League table. Everton finished four points above 18th-placed Burnley that season, and Burnley successfully argued that a six-point penalty applied then would have kept them up at Everton's expense.
Everton said they were surprised and angered by the ruling. The club also argued that it had already received a sporting sanction and said the decision could create a difficult precedent for English football.
Burnley Award Includes £26m Plus Interest
The compensation order is £26 million, plus £9.1 million in interest. ESPN reported that further interest could take the total close to £40 million, while Burnley are believed to have sought £51.7 million.
Everton were judged to have overspent by £19.5 million for the accounting period. The club dispute the calculation of Burnley's financial loss and argue they did not know they would be in breach, with six weeks between Burnley's relegation and the end of Everton's financial year.
The report added that other clubs had explored possible legal action but did not proceed, and that there are no further outstanding cases against Everton.
Burnley Chairman Alan Pace Says Action Was Validated
Burnley chairman Alan Pace said the club's action had been validated by the commission. He said Burnley could not accept competing in a competition later shown to have been compromised, and argued that clubs following the rules deserve a level playing field.
Everton are adamant the compensation order will not affect their summer transfer plans and will not count toward future PSR calculations. That matters for a club now operating under The Friedkin Group, which completed its takeover in December 2024 and left Everton on more stable financial ground.
The next step is the appeal. Until that is resolved, the case remains both a direct Everton-Burnley dispute and a wider Premier League test of how financial breaches, sporting advantage and compensation claims fit together after the season has already moved on.