Exclusive: Everton and Burnley could agree deal after legal update emerges

Everton could still reach an out-of-court settlement in their ongoing legal battle with Burnley, sources have told Football Insider

Burnley were one of five clubs to apply for compensation alongside Leeds United, Leicester City, Southampton and Nottingham Forest after Everton were charged with a profit and sustainability (PSR) breach for 2021-22 and 2022-23.

Burnley are suing Everton for £50million, with The i Paper reporting on 17 October the three-week case between the Premier League clubs came to an end at the International Dispute Resolution Centre in London earlier this month. 

The newspaper said the three-person panel could deliver its verdict in early 2026, but it’s understood there isn’t a firm timeline in place for a decision.

Sources have told Football Insider Everton could still agree a settlement with Burnley in the coming weeks after the two parties have now seen each other’s arguments. 

Everton
Credit: Getty Images

How much compensation could Everton be forced to pay Burnley?

The Athletic reported on 23 September Leeds and Everton reached an out-of-court settlement earlier this year after Elland Road chiefs decided their case wasn’t strong enough to go to court. 

Finance expert Stefan Borson told Football Insider Everton likely agreed to pay Leeds up to £1.5m after they suffered losses of around £2m. 

Meanwhile, Burnley are claiming they missed out on extra revenue following their relegation from the Premier League in 2021-22 – one of the seasons where Everton were found to have breached the PSR rules. 

The Clarets finished third-bottom and four points behind the Toffees in that campaign. 

Burnley owner Alan Pace
Credit: Imago

Everton were docked a total of eight points in the 2023-24 season following their previous spending breaches, with top-flight clubs only permitted to make £105m of losses over a rolling three-year period.

Borson told Football Insider Everton could be forced to pay Burnley up to £10m in compensation if the Clarets are successful in their legal battle. 

Premier League clubs ‘concerned’ after legal action

Meanwhile, Football Insider revealed on 17 September Premier League clubs are “concerned” about the increasing levels of litigation across the top flight.

Everton and Burnley’s case is one of several ongoing legal battles involving Premier League clubs.

Manchester City reached a settlement with the Premier League in their associated party transactions (APT) battle last month, but they are still waiting to hear the verdict in their 115 charges case. 

Elsewhere, Chelsea have been charged by the FA with 74 alleged rule breaches relating to payments to agents between 2009 and 2022, with a points deduction potentially on the cards if they are proven to have gained a sporting advantage. 

Richard Masters, Premier League CEO
Credit: Imago

Tottenham and INEOS are currently locked in a legal battle after the petrochemicals company, which is spearheaded by Manchester United co-owner Sir Jim Ratcliffe, exited a sponsorship deal with the club three years into a five-year agreement.

Spurs are seeking just over £11m, but INEOS is counter-suing the north London giants after accusing them of holding sponsorship talks with Audi linked to the sale of Harry Kane to Bayern Munich.

For more Everton news, follow us on Facebook or join our brand new WhatsApp Channel for instant updates to be sent straight to your phone.