Everton have been ordered to pay Burnley over £35m in compensation over Premier League PSR breaches, with the Toffees launching an appeal

Everton Football Club has been ordered to pay Burnley more than £35 million in compensation following a landmark ruling linked to Premier League profitability and sustainability (PSR) breaches during the 2021/22 season.

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The decision relates to financial irregularities that resulted in Everton receiving a 10-point deduction in late 2023, which was later reduced to six points on appeal under the club’s previous ownership.

The ruling found that Burnley were directly affected by the penalty, arguing that had the six-point deduction been applied during the 2021/22 campaign, the Clarets would have avoided relegation at Everton’s expense.

Everton finished four points above Burnley in the Premier League table that season, a margin now central to the compensation dispute.

Following Wednesday’s announcement, Everton strongly rejected the decision, describing it as “flawed” and confirming that the club has lodged an appeal.

In a statement, the Merseyside club expressed surprise and anger at the ruling, arguing that it misinterprets both legal and factual evidence presented during proceedings.

Everton also warned that the decision could set a “dangerous and unworkable precedent” for English football by linking financial breaches to hypothetical league outcomes across a season.

The club further insisted that the panel failed to properly consider its legal submissions and expressed confidence that the appeal process would overturn the decision.

Burnley chairman Alan Pace, however, welcomed the outcome, stating that the ruling vindicated the club’s position that the competition had been compromised.

He argued that no club should be required to compete in a league later found to have been affected by financial rule breaches, adding that the commission had confirmed an improper competitive advantage was gained.

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The case marks one of the most significant financial dispute rulings in recent Premier League history and is expected to continue through the appeals process.