Everton was ordered by the Premier League’s Independent Disciplinary Commission to pay Burnley nearly £40 million for breaching financial rules in 2022, which the commission ruled impacted Burnley’s relegation from the 2021–22 Premier League season [1, 2].
The dispute focuses on whether Everton’s breach of the Profit and Sustainability Rules (PSR) gave them a sporting advantage that affected Burnley’s relegation. Burnley finished 18th with 35 points in that season, while Everton placed 16th with 39 points, and Leeds United was 17th with 38 points [1, 2].
Everton denies the ruling’s finding that its breach caused Burnley’s relegation. The club issued a statement saying, “The Club does not recognise the findings of the panel in determining Burnley’s relegation from the Premier League in May 2022 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” [1].
In November 2023, Everton received a 10-point deduction for the PSR breach. This was later reduced to six points on appeal and applied to the 2023–24 season standings rather than retrospectively to 2021–22 [1, 2]. Everton argues this ruling sets a “dangerous and unworkable precedent” by penalizing clubs for breaches at any time in a financial year [1].
The core question is whether applying the points deduction during 2021–22 would have altered the relegation outcome. Everton claims the evidence contradicts the panel’s conclusion and expressed confidence that the appeal will succeed [1].
Burnley’s relegation was confirmed at the end of the 2021–22 season in May 2021 [1, 2]. Everton announced its appeal of the compensation ruling on June 10, 2026, aiming to overturn the decision [1, 2].
The appeal process is ongoing, and no immediate resolution date has been set.