Everton has been ordered to pay £35.1 million in compensation to Burnley following a breach of Profit & Sustainability Regulations (PSR) during a season in which they narrowly avoided relegation at Burnley’s expense. The decision, made by an independent panel, has left Everton surprised and angered, prompting the club to launch an appeal against the ruling, which they argue could lead to a flood of similar legal cases among clubs.

In their statement, Everton described the ruling as "fundamentally flawed" and expressed confidence in the success of their appeal. They stated:

The decision of a Premier League Independent Disciplinary Commission is surprising and angering. The ruling misrepresents clear evidence and does not recognize that Burnley’s relegation was not solely caused by a sporting advantage gained by Everton.

Burnley initially sought £51 million in damages after finishing just four points behind Everton in the 2021-2022 season, ultimately being awarded £26 million in compensation, along with £9.1 million in interest payments. Everton criticized the ruling as unprecedented, arguing it exceeds penalties previously imposed on clubs like Chelsea and West Ham for financial breaches.

The panel had previously imposed a 10-point deduction on Everton for breaching PSR, which was later reduced to six points on appeal. Everton contends that their financial issues arose under former owner Farhad Moshiri, and they were unaware of any breaches at the time. They emphasized that the compensation order will not hinder their summer spending plans under the Friedkin Group.

Despite the challenges, Everton maintains that they are currently compliant with PSR regulations.