Chalien Dantes / Contributor

Everton FC have been ordered to pay £35m in damages and interest to Burnley FC following a ruling linked to breaches of the Premier League’s financial rules.

The case relates to the 2021–22 season, when Everton were found to have exceeded profit and sustainability limits over a three-year period. Burnley argued that the breach affected their survival chances that season and pursued compensation after their relegation from the Premier League. A Premier League commission awarded Burnley £26m in damages, along with a further £9m in interest.

Everton have pushed back strongly against the ruling and have lodged an appeal. The club insists the decision is flawed in both law and interpretation and says it will challenge the outcome in full.

The ruling will not affect Everton’s current financial reporting under profit and sustainability rules.

Everton were previously docked 10 points in November 2023 for separate breaches, a sanction later reduced to six points on appeal and applied to the 2023–24 season.

Burnley’s argument centred on the claim that had any punishment been applied during the 2021–22 campaign, it could have altered the relegation battle. Everton finished 16th that season, narrowly above Leeds United and Burnley, who dropped to the Championship.

Leeds are reported to have already reached a separate settlement with Everton, while other clubs, including Leicester City, Nottingham Forest and Southampton, were also linked to possible legal action.