Stefan Borson: This is why Burnley have a case against Everton after legal update
Burnley have a case against Everton due to a loss of chance following their previous relegation from the Premier League.
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 Burnley could prove there was a loss of chance as they seek compensation from Everton.
Farhad Moshiri gave evidence in Everton case
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 Burnley do have a case, which will surprise some people.
“I wrote in March that it felt to me like this was probably positioned as a loss of a chance case by Burnley, and the question there is effectively assessing the likelihood or not that Everton would have got four or more less points had they not breached.
“I think there’s a decent chance that could be established in a loss of chance case. You need a real and substantial chance to be established by the court, and in English law that tends to be around 10 per cent as being real and substantial, i.e. just a minuscule chance.
“So, I think they’ve got a good chance of saying that there was a meaningful chance of Everton getting four or more less points. That would have then led to Burnley surviving, and that would then lead to an assessment of whether Burnley had losses.
“In terms of why I think Burnley have got a case, a lot of the stuff that was said by the original independent commission says that Everton and any PSR breach effectively is a sporting advantage.
“They did put it down to improving the squad. Moshiri gave evidence in that hearing that a lot of the spending was to do with their non-existent midfield, i.e. improving the playing side.
“I think it’s very hard for Everton to argue that this was purely about the stadium, or that they gained no sporting advantage.
“I think all of that stuff is very hard for Everton to succeed on, and if that’s very hard to succeed on, then you would think Burnley have got a good chance of winning something.”
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 to agree Burnley settlement
Former Everton CEO Keith Wyness told Football Insider he expects the Toffees and Burnley to reach a settlement in their legal battle.
Scott Parker led the Clarets back into the Premier League last season, having finished second in the Championship table behind Leeds.
Burnley currently sit 16th in the top-flight table after five games, while Everton are 10th under David Moyes.
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