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Burnley are seeking legal advice to sue the Premier League for compensation after Everton’s punishment for breaching the Profit and Sustainability Rules was confirmed as a six-point deduction last week.
Mail Sport revealed last year that a number of Premier League clubs were considering legal action against Everton after being accused of spending breaches, but that prospect has faded due to the club’s financial problems.
However, Burnley are exploring the possibility of bringing a financial claim against the Premier League, arguing that they were relegated to the Championship due to what they consider to be a failure by the senior executive to enforce spending rules in real time.
The Lancashire club finished four points behind Everton in 18th place in the 2021/22 season, the final campaign of the three-year period in which their rivals were punished for spending too much, but would have stayed top had they been imposed the penalty of six points. during that season.
As Mail Sport revealed at the time Burnley and Leeds wrote to the Premier League in May 2022 with a warning that they reserved the right to sue over concerns over Everton’s spending after they recorded losses of £371.8m for three years without being charged.
Burnley are seeking legal advice to sue the Premier League after Everton’s points deduction was reduced to six points
Everton’s 10-point penalty for breaching Premier League spending rules reduced to six following appeal
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Everton were accused of breaking the rules the following March, and now that the case has finally concluded with the sanction reduced to a six-point deduction on appeal, Burnley are considering their options.
Burnley’s decision will be based on weighing the costs of taking legal action against the potential reward should they be successful.
In an interim ruling last summer, the chairman of the independent commission that heard Everton’s case, David Phillips KC, ruled that their Premier League rivals would have the right to seek compensation if the club were found guilty.
The Premier League pushed for Everton’s first case to be heard over breaches of spending rules last season, which, given their eventual sanction, would have seen them relegated, but it was overturned by the independent commission which sided with the club’s arguments that the hearing should be delayed.
The Premier League has since changed its rules so that spending cases can be heard immediately after the season in which they occur, as was the case with Everton’s second charge and Nottingham Forest’s, but those regulations were not in force during the 2021/22 season.
Vincent Kompany’s team is 11 points away from safety with 11 games left in the season
Burnley could argue that they were relegated to the Championship due to what they see as a failure of the senior executive to enforce spending rules in real time.
Leeds and Leicester could also have a financial claim depending on the outcome of Everton’s second PSR charge, which will be heard next month and relates to excessive spending over the three years culminating in last season.
Everton finished 17th last season, two points above Leicester and three ahead of Leeds, who went down, so the extent of any points deduction will determine whether they have the right to claim.
However, Leeds and Leicester also face their own potential PSR challenges, so it is not certain they will make a case.
The three clubs have previously discussed taking legal action against Everton, but as Mail Sport reported in December, they opted not to do so due to financial problems at Goodison Park.
Burnley declined to comment.
