Rival clubs threaten to sue Everton for £300M as Leeds, Leicester, Nottingham Forest and Burnley are furious over the Toffees potentially evading sanctions this season over an alleged breach of spending rules
- Everton was charged with breaching Premier League spending rules in March
- But the top flight lawsuit against them won’t be heard before the summer
- Leeds, Leicester, Forest and Burnley are preparing legal action if Everton stay
Everton are being sued by their Premier League rivals for £300 million if they avoid relegation.
Mail Sport has learned that Southampton, Leicester, Leeds, Nottingham Forest and Burnley have informed the Premier League that they believe they are entitled to compensation from Everton if the club is found guilty of breaching spending rules.
The clubs are also said to have submitted a request for Everton’s disciplinary hearing to be speeded up so that any sanctions, including a possible points deduction, can be carried out this season. The rejection of this request by the committee that was set to hear the case has led to the clubs filing legal papers with the top flight making them parties to the dispute.
The battle for damages would be heard by another independent commission in the event Everton are found guilty by the tribunal appointed by the Premier League to hear the case of their alleged spending offences, which were issued in March. Although five clubs have formally lodged their complaint, the £300 million claim would ultimately be made by the two clubs relegated along with Southampton if Everton survive.
Everton are being sued for £300 million by their Premier League rivals if they avoid relegation
The Toffees are just one point above the relegation zone with two games left to play this season
Burnley can also make a separate claim due to dissatisfaction with the circumstances of their relegation from the Premier League last season.
The £100 million per club claim is seen as an estimate of the loss of Premier League revenue for one season after deducting parachute payments.
With Southampton already down, Leeds and Leicester are currently in the relegation zone with two games to go, while Everton are a point above the bottom three and Forest are a further two points clear.
Leeds and Burnley threatened legal action against Everton 12 months ago amid suspicions their £372m three-year rolling losses breached profit and sustainability (P&S) rules, but the case never materialized after the Premier League had given assurances that the club’s spending was in compliance with regulations, due to the impact of Covid being taken into account.
However, Everton were charged in March after publishing updated accounts for last season, having lost £313.5 million for the previous three years. P&S rules prohibit clubs from losing more than £105 million over a three-year period, although expenditure on infrastructure, women’s football and community projects are deducted from the calculations. Clubs can also claim compensation for losses directly attributable to Covid.
In their most recent accounts, Everton say losses from Covid over the past three years have amounted to £90.4m, though that only reduces their total loss to £223.1m – well over the limit.
The Merseyside club was referred to an independent commission in March after being accused of breaching financial rules by the Premier League
Burnley made an immediate return to the Premier League but remain bitter over last year’s loss. In addition to the loss of TV revenue, the club suffered an additional financial penalty, with relegation triggering an early redemption clause in a £65 million loan from MSD Capital.
A bill for damages would add further strain to Everton’s financial problems and increase the risk of them going into administration.
Everton insist they have followed the rules and have vowed to vigorously defend themselves against the charges. The Premier League declined to comment.