In the 2021-22 season, Everton was deducted points for violating the Premier League's Profit and Sustainability Rules (PSR). The Daily Mail revealed in November 2023 that Burnley, Leeds United and Leicester City planned to jointly sue Everton for compensation of £300 million because all three teams were relegated, while Everton retained a Premier League seat.
Previously, Everton was deducted 10 points for violating PSR regulations within three years before the end of the 2021-22 season. In February of the following year, the penalty was reduced to 6 points, but in April 2024, the club was deducted 2 points for another violation. Burnley had considered suing the Premier League itself, believing that it was the dereliction of duty of the league management that led to Everton's violation. However, the focus is now turning to prosecuting Everton, and the case will be heard this week at the London International Dispute Resolution Centre.
Burnley will argue that Everton's financial violations gave it a competitive advantage, thus avoiding a downgrade. Burnley was only 4 points behind Everton at the end of the season and eventually dropped into the Championship. If Everton was deducted 6 points in the 2021-22 season, Burnley could have relegated and Everton would have been relegated. Burnley is estimated to believe he deserves more than £50 million in compensation to compensate for the loss of income caused by the downgrade.
Premier League regulations that clubs shall not lose more than £105 million in three seasons, and Leicester City and Nottingham Forest have also violated this rule in recent years. Burnley has been preparing for the case for the past year, leading the legal team by Amy Wells, who served as Everton’s legal director from 2017 to 2022. Wells joined Burnley last year. The
case will be conducted privately and the public may not be able to know the details of the outcome. However, any judgment could have a significant impact on the Premier League’s most compelling lawsuit, namely, Manchester City’s alleged 115 illegal spending cases. If Burnley wins, other clubs may follow suit and seek compensation.
Although the outcome of the Manchester City case is about to be revealed, Manchester City signed a huge £1 billion contract with Puma this summer, showing the club's confidence in its position in European football.