Burnley, Leeds and Leicester are planning to sue Everton for £300 million

Burnley, Leeds and Leicester plan to sue Everton for a total of £300 million after the Premier League club were found guilty of breaching financial fair play rules, say reports.

Earlier today, it was confirmed that the Toffees have been deducted 10 points – the biggest sporting sanction in Premier League history – for breaching financial fair play rules.

Since the news emerged, it has been revealed that Leeds United and Burnley had been in contact with the Premier League, asking them to investigate whether Everton broke spending rules during the pandemic.

A joint letter signed off by Leeds chief executive Angus Kinnear and Burnley chairman Alan Pace is what prompted the investigation, according to The Athletic.

And now, a report from the Daily Mail suggests both Leeds and Burnley, as well as Leicester City, are intending to sue Everton for a total of £300 million.

The report goes on to claim that senior figures at all three clubs held talks on Friday afternoon to reaffirm their plans to sue following the verdict, which places Everton in the relegation zone with four points.

They are understood to have agreed to follow through on their previous threats to sue Everton, which they formulated over the summer after Leeds and Leicester suffered relegation from England's top flight.

Sean Dyche's side, meanwhile, avoided Premier League relegation by just two points

Burnley are believed to have offered their support as they remain 'convinced' that Everton's spending breached financial rules when they were relegated the season before.

The report adds that all three clubs have 'repeatedly expressed unhappiness' that the Everton case was not dealt with last season as a points deduction in the previous campaign would have relegated them.

The 10-point punishment was confirmed by the Premier League in a statement on Friday.

It read: "An independent commission has imposed an immediate deduction of 10 points on Everton FC for a breach of the Premier League's Profitability and Sustainability Rules (PSRs).

"The Premier League issued a complaint against the club and referred the case to an independent commission earlier this year.

"During the proceedings, the club admitted it was in breach of the PSRs for the period ending Season 2021/22 but the extent of the breach remained in dispute.

"Following a five-day hearing last month, the commission determined that Everton FC's PSR calculation for the relevant period resulted in a loss of £124.5 million, as contended by the Premier League, which exceeded the threshold of £105 million permitted under the PSRs.

"The commission concluded that a sporting sanction in the form of a 10-point deduction should be imposed. That sanction has immediate effect."