Everton have filed an immediate appeal after a Premier League independent disciplinary commission ordered the club to pay Burnley more than £40m in compensation, stemming from Everton's profitability and sustainability rules (PSR) breach during the 2021/22 season.

The commission's ruling centred on Burnley's relegation from the Premier League in May 2022. Burnley successfully argued that, had the six-point deduction Everton later received for their PSR violations been applied during that same season, the Clarets would have avoided the drop — surviving at Everton's expense.

Everton's response

Everton have described the verdict as both "surprising" and "angering," insisting the ruling is "fundamentally flawed in both law and fact." The club has moved quickly to contest the decision.

"Everton Football Club is surprised and angered by the decision of a Premier League Independent Disciplinary Commission to order a compensation payment to Burnley Football Club in relation to Everton's PSR breach in June 2022."

Everton's statement went further, rejecting the commission's core finding. The club does not accept that Burnley's relegation was caused by any sporting advantage gained through its financial rule breach — particularly given that a sporting sanction, in the form of a points deduction, had already been handed down and served.

Background to the case

Everton were initially docked 10 points in late 2023 for financial misconduct under the ownership of Farhad Moshiri. That penalty was subsequently reduced to six points following an appeal. The original breaches related to the 2021/22 season, when Everton finished four points above 18th-placed Burnley.

Everton's statement argued that the ruling establishes a "dangerous and unworkable precedent" for English football by suggesting a club can be found in breach of financial regulations at any point within a financial year. The club expressed confidence that the appeal would be overturned, stating that the panel "misrepresents the clear evidence" presented by Everton's legal team.