Everton owners ‘likely’ agreed deal with Farhad Moshiri to pay Burnley compensation
Everton’s owners The Friedkin Group (TFG) likely agreed a deal with Farhad Moshiri around potential compensation owed to Burnley.
TFG, which is spearheaded by Dan Friedkin, secured its takeover of Everton last December.
The ownership group are currently dealing with an ongoing legal battle as Burnley are suing Everton for £50million, with the case scheduled to begin last week at the International Dispute Resolution Centre in London.
Burnley were one of five clubs to apply for compensation alongside Leeds United, Leicester City, Southampton and Nottingham Forest after the Toffees were charged with a profit and sustainability (PSR) breach for 2021-22 and 2022-23.
Former Man City financial adviser Stefan Borson exclusively told Football Insider TFG likely kept some of the money back that it paid Moshiri to purchase David Moyes’s side amid the ongoing legal battle with Burnley.
Burnley compensation wrapped into Everton takeover deal
Burnley are claiming they missed out on extra revenue following their relegation in 2021-22, one of the seasons where Everton were found to have breached the PSR rules.
The Lancashire side, who finished third-bottom and four points behind the Toffees, are the only one of the five clubs to have followed through with their bid to receive compensation.
Speaking exclusively to Football Insider, Borson said: “I think it doesn’t really matter in terms of Everton and funds.
“I think from a PSL perspective, it probably will be excluded from any calculation. In terms of who’s going to end up paying, ultimately it is wrapped into the deal that the Friedkins did when they bought the business from Moshiri.
“They likely have kept back some of the consideration that they paid to Moshiri or they specifically valued it as part of the deal and made a deduction for it within the deal.
“I don’t think it really matters to Everton fans, although I’m not sure they take my point on that, but it’s largely a financial matter for the new owners.”
Everton were docked a total of eight points in the 2023-24 campaign following their spending breaches, with top-flight clubs only permitted to make £105m of losses over a rolling three-year period.
Everton made behind-the-scenes move to boost PSR position
TFG is looking to improve Everton’s financial situation following their previous PSR issues under Moshiri.
Everton are now in a stronger PSR position, but they are still believed to be slightly restrained as they look to kick on under the new ownership.
Everton sold their women’s team to a parent company earlier this summer in a move that is expected to generate a significant paper profit and ease any lingering PSR fears.
The Merseysiders’ latest published accounts for 2023-24 revealed their revenue increased from £172m in 2022-23 to £187m, while their losses dropped from £89m to £53m across the same period.
For more Everton and exclusive news, follow us on Facebook or join our brand new WhatsApp Channel for instant updates to be sent straight to your phone.