Sources: Everton at risk of record-breaking payout as Leeds United, Burnley and Leicester City legal action begins
Leeds United, Burnley and Leicester City have begun legal proceedings against Everton following the conclusion of the Premier League's financial investigation, sources have told Football Insider.
The Toffees were handed a 10-point deduction last week (17 November) after an independent commission ruled that they were guilty of breaching financial regulations.
That ruling has opened the door to legal claims from clubs who feel wronged as a result of Everton's overspend.
The Premier League has confirmed that the independent regulatory commission that ruled on Everton’s case will also decide on any compensation claims.
The commission was headed by David Phillips KC, Judge Alan Greenwood and Nick Igoe, the former financial director at West Ham.
It is believed five clubs - Leeds United, Burnley, Leicester City, Southampton and Nottingham Forest - are now pushing hard for compensation from the Merseysiders.
Of those, Burnley, who finished 18th in the 2021-22 season, and Leicester, who finished 18th last season, would appear to have the strongest cases for damages.
A well-placed source has told Football Insider that legal action over a potential combined claim worth £200million has now begun.
The clubs have 28 days from receiving the ruling, which came last week, to pursue a claim - and it is believed that the story of Everton's rule breaches is far from over.
Football Insider revealed on Wednesday (22 November) that prospective new owners 777 Partners are preparing to re-enter negotiations with Everton as they face a huge legal battle ahead.
A potential reprieve for the Toffees could come if their appeal - which has already been officially lodged - is successful.
Football Insider revealed on Saturday (18 November) that Everton expect their 10-point deduction to be significantly reduced after their appeal.
Leeds, Burnley, Leicester and Southampton have all been relegated in the past two seasons, while Nottingham Forest came close to the drop last term and were forced into heavy spending of their own to avoid relegation.
It is believed the clubs feel Everton's overspend distorted the chances of them remaining in the Premier League.
Sean Dyche's side avoided relegation on the final day of the 2022-23 campaign after defeating Bournemouth at Goodison Park.
In the previous 2021-22 campaign, Frank Lampard's side finished the season four points from danger after a late rally saw them win three of their final six games.
In other news, Everton want to sign forward duo in January.