Everton face double legal fight as ‘bitter’ Burnley seek relegation compensation on top of Premier League rivals’ claim
Burnley remain “bitter” about the circumstances of their relegation a year ago and may launch a compensation claim against Everton in addition to the one threatened by Premier League rivals this season, the Daily Mail reports.
While already-down Southampton, plus relegation-threatened Leeds United, Leicester and Nottingham Forest, have filed legal papers signalling their intention to launch a claim for £100million each for whichever three end up in the Championship, the Clarets have indicated their own intention to then compound that misery.
They abandoned the threat of legal action a year ago, alongside Leeds, after the Premier League provided assurances that the hundreds of millions in losses were permitted due to Covid-19 allowances.
But the Toffees were charged by the league on 24 March with a breach of profit and sustainability rules, in light of their most recent accounts still showing losses well in excess of the £105million limit over three years, and should an independent commission find them guilty not only could the rivals then sue for major compensation but Burnley could add their own separate claim on top.
The Mail report that: “Burnley have bounced back to the Premier League immediately but remain bitter about going down last year.
“As well as losing TV revenue, the club suffered an additional financial penalty, with relegation triggering an early-repayment clause in a £65m loan from MSD Capital.”
Compounded
As Everton have maintained that they’ve done everything above board and will defend their position it may just be that the club avoids any of the massive financial hits that are being mooted currently.
But while they were able to convince the Premier League, and by extension rival clubs, a year ago, they have already failed to do the former this time around, amid a suggestion complaints led to the March charge.
Whether fault lies with the Toffees or the governing body will presumably become clear once the first hearing is held, but how long that will take and whether appeals will drag the process months and months down the line remains to be seen.
The club hierarchy are absolutely going to have to do everything they can to provide evidence that no rules have been broken, because it seems that interested parties sense an injured rival and don’t want to miss out if the proceeds are being divided up.
It would be logical for the charge to only relate to the previous 12-months given that the league was happy with matters this time last season, and if so it would perhaps be difficult to see how Burnley’s grievance could be included now either way.
But the threat of a three-pronged punishment, first from the Premier League, then compensation to this year’s relegation rivals, and then a third from one of last year’s is unwelcome.
And that is all if Sean Dyche, who was on the either side of the Burnley divide last season, can keep the club up, with major turmoil on the cards anyway if he can’t.