Everton have been ordered to pay Burnley £35 million after a Premier League tribunal ruled that the Toffees’ breach of financial rules directly contributed to Burnley’s relegation from the top flight.
The dispute dates back to the 2021-22 campaign, when Everton were found to have violated the Premier League’s profitability and sustainability regulations (PSR) across a three-year period.
Burnley argued that Everton’s overspend unfairly strengthened their squad and weakened the Clarets’ chances of avoiding the drop.
An independent commission has now awarded Burnley £26 million in damages, plus an additional £9 million in interest.
Everton have already confirmed they will appeal, insisting they will challenge the decision “robustly and thoroughly”.
In a strongly worded statement, the Merseyside club said the ruling was “fundamentally flawed in both law and fact” and warned it sets “a dangerous and unworkable precedent” for English football.
Everton’s overspend during the relevant period was calculated at £19.5 million. Both clubs presented expert evidence simulating how many extra points that breach might have earned Everton.
The commission found Burnley’s projections — which suggested a benefit of between 3.85 and 7.13 points — “more compelling”, concluding that “on the balance of probabilities, Everton’s breach of the PSR caused Burnley to be relegated”.
Crucially, any compensation payment will not affect Everton’s own PSR calculations for the current accounting period.
