(Credit: Imago)
(Credit: Imago)

Exclusive: Everton 'confident' in Burnley legal battle as timeline emerges

James Murray

James holds a degree in Sports Journalism and Communications (MA) from the Real Madrid Graduate School. He has experience working for a number of local news outlets as well as the Sunday Mirror and Real Madrid TV. James is from Scunthorpe and has an affinity with Scunthorpe United, but is also a huge West Ham supporter and an expert on all things to do with the Hammers. He started working for Breaking Media in July 2023, initially writing on the Club Sites, where he specialised in West Ham content, before moving to Football Insider – where he is now an expert in football finance, speaking regularly with Stefan Borson and Keith Wyness to generate high-quality content in all things related to finance in the Premier League, Football League, and Scottish Premiership.

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Everton are showing signs of confidence in their ongoing legal battle with Burnley, sources have told Football Insider

Burnley were one of five clubs to apply for compensation alongside Leeds UnitedLeicester CitySouthampton 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. 

Sources have told Football Insider Everton are showing signs they are "confident" the verdict will go in their favour after an out-of-court settlement hasn’t been agreed with Burnley.

Burnley owner Alan Pace
Burnley owner Alan Pace has taken legal action against Everton (Credit: Imago)

What are Burnley claiming in Everton legal battle?

Finance expert Stefan Borson told Football Insider Everton and Burnley could be waiting until January for the three-person panel to deliver its verdict. 

That provides time for the Premier League clubs to reach a settlement, but the chances of an agreement taking place are understood to be unlikely this far down the line. 

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, who are now managed by Scott Parker, finished third-bottom and four points behind the Toffees in that campaign. 

Burnley manager Scott Parker
Scott Parker achieved promotion back to the Premier League with Burnley last season (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. 

How much compensation did Everton pay Leeds?

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. 

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

Everton owner Dan Friedkin
Everton reached an out-of-court settlement with Leeds United earlier this year (Credit: Imago)

Leeds and Burnley were both promoted back to the Premier League last season, with Daniel Farke’s side claiming the Championship title. 

There is just one point currently separating the two promoted sides as Leeds are in 15th spot and Burnley are a place behind in 16th. 

Meanwhile, Everton are in 14th place, but David Moyes’s side are only above Leeds on goal difference nine games into the season. 

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