Everton release fiery statement as record-breaking fine for PSR breaches confirmed

Everton have released a damning statement after it was confirmed they had been handed a brutal fine following a legal battle with Burnley over breaching Premier League rules.

In late 2023, Everton were given a 10 point deduction for breaching the Premier League's Profitability and Sustainability Rules (PSR) during the 2021/22 season.

Following an appeal, the deduction was reduced to six points in early 2024.

After the decision was confirmed, Burnley, who were relegated to the the Championship during the season that that Everton breached the rules, a Premier League tribunal gave Burnley given to sue Everton.

Tribunal and commission chairman David Phillips QC also ruled that ruled that Leeds, Leicester, Nottingham Forest and Southampton had the right to make claims, but the clubs decided not to pursue legal action.

Under the Premier League’s rules, clubs are able to seek compensation from other clubs for rule breaches that cause them loss, and as such, The Toffees have been ordered to pay compensation and interest of nearly £40million.

Since then, Everton have spoken out to confirm that they will be appealing the decision, writing that they were 'surprised and angered' by the 'fundamentally flawed' decision.

"Everton Football Club is surprised and angered by the decision of a Premier League Independent Disciplinary Commission to order a compensation payment to Burnley Football Club in relation to Everton’s PSR breach in June 2022," the statement reads.

"Everton has appealed the decision and is clear in its belief the ruling is fundamentally flawed in both law and fact.

"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."

It continues, "This ruling sets a dangerous and unworkable precedent for English football, 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 believes the panel’s ruling misrepresents the clear evidence presented by its legal representatives and that an appeal will be successful.

"The Club is confident of its ongoing PSR compliance and has also obtained confirmation from the Premier League of its clear position that this ruling should not be the cause of any future PSR sanction. 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.

No further comment will be made on this matter until the appeal process has been successfully concluded."

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It is believed that in the legal case Burnley claimed that had the six point deduction taken place in 2022, the year of the breaches, then Everton would have been relegated and Burnley would have remained in the Premier League.

Burnley reportedly sought at least £50m from Everton in compensation, with the figure representing the difference between their 2022-23 “parachute money” payment and the minimum they would have earned from the TV deal in the Premier League.

But, the figure of £40m was decided by taking into account the value of the lost opportunity for Burnley to stay in the top flight and the likelihood of their success.

Everton finished 16th in the 2021-22 season after picking up 39 points, placing them just four points clear of 18th-placed Burnley.

What does the Everton PSR fine mean for the rest of the Premier League?

The decision to hand Everton such a significant fine is the first of its kind and could have a significant impact on future financial fair play disputes.

Burnley's success shows other clubs that pushing for financial compensation if their rivals are found to have broken PSR rules can clearly be massively worthwhile.

With that in mind, many fans will look ahead to the upcoming arrival of the verdict in the case of Manchester City's 115 alleged financial misconducts.

It is reported that, should City be found to have breached the rules, several Premier League clubs will sue for compensation and have already lined up legal counsel to work on a case.