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Why Burnley are suing Everton for millions in compensation as legal battle begins

Burnley are suing Everton for over £50 million
Burnley are suing Everton for over £50 millionČTK / imago sportfotodienst / Mark Cosgrove/News Images
Burnley are looking for £50 million-plus in compensation after claiming loss of revenue as a result of their relegation to the Championship.

The case comes as Burnley claim they are owed compensation following a breach of profit and sustainability rules (PSR) by Everton after the side were handed a 10-point deduction during the 2023/24 season, which later got reduced to six points.

Burnley argued that the PSR breach came during the 2021/22 season, and so the deduction should’ve been applied that year as the club would then have avoided relegation and remained in the Premier League. 

The case will commence in the middle of this week at the International Dispute Resolution Centre in St Paul’s, London and reports state that Burnley will argue they are entitled to compensation because the Toffees gained a sporting advantage by breaching those rules. 

Burnley were relegated from the Premier League in 2021/22 when they finished just four points behind Everton in 18th place, and it will be interesting to see how the case pans out over the next few months in as each side prepares to face an intense legal battle. 

Interestingly, if Burnley are successful, it would open the doors for other clubs to mount similar claims against rivals that breach spending rules in the future, therefore making punishing those who break the rules even more. 

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