Stefan Borson: This is how much compensation Everton could be forced to pay Burnley
Everton could be forced to pay Burnley compensation after a legal update has emerged.
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.
The i Paper reported on 15 September Burnley are suing Everton for £50million, with the case scheduled to begin last week at the International Dispute Resolution Centre in London.
Former Man City financial adviser Stefan Borson exclusively told Football Insider the compensation owed to Burnley could be up to £10million if their claim is successful.
Borson previously told Football Insider why Burnley have a case against Everton in their ongoing legal battle.
Burnley made big cuts after Premier League relegation
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: “Burnley did manage themselves very well, interestingly.
“In relegation, they cut the wage bill and their other costs in half, which meant that once you add in the parachute payments and the fact that they then won the Championship in the following season, generating substantial amounts of matchday revenue, even above the Premier League, net-net they didn’t have big losses, so the question is going to be actually how much did the relegation end up costing them?
“So, what is the size of the claim? Then you’re going to multiply that effectively by the possibility that Everton would have got four or more less points.
“On a weighted basis, you’re going to come out with a potential win for Burnley.”
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 could face £10m blow
Everton will now have to wait and see how much compensation they could be forced to pay should Burnley win their case against them, but Borson expects the final sum to be upto £10million.
Borson said: “I just don’t think overall the case is going to be worth that much money, and by that much I think zero to £10m is the kind of range. Obviously, there’s quite a lot of guesswork. We have very little information.
“We’ll know a lot more if we ever see a decision. There’s a lot of guesswork, but that’s kind of the sort of likely range that we’re talking about, and that likely range feels like something that could have been settled.
“It hasn’t been, so we’ll have to wait and see.”
Scott Parker led Burnley back into the Premier League last season, having finished second in the Championship table behind Leeds.
The Clarets currently sit 16th in the top-flight table after five games, while Everton are 10th under David Moyes.
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