Everton could face a £300million legal challenge from rival clubs if they avoid relegation from the Premier League this season.
The Toffees were charged by the Premier League with an alleged breach of financial fair play rules in March. The club have posted staggering losses of £372m over the past three years, in excess of the £105m limit.
Everton have denied any wrongdoing - they have also not been found guilty of breaking any rules - and vowed to “strongly contest” the charge, which could carry a substantial points deduction if proven. But that punishment isn’t the only possible outcome, with Southampton, Leicester, Leeds, Nottingham Forest and Burnley all eager to pursue compensation as well.
The Daily Mail reports that the five angry clubs applied for Everton’s disciplinary hearing to be fast-tracked so that any punishment dished out would be applied to the current season. The commission looking into the allegations rejected this request, prompting the clubs to lodge legal papers making them party to the dispute.
While there are five clubs involved, the £300m claim would be brought by the two clubs who are relegated alongside Southampton, were Everton to avoid the drop. They believe they would be entitled to £100m each, which is an estimate of the loss of Premier League income for one season after the deduction of parachute payments.
Despite winning the Championship to return to the top flight at the first time of asking, Burnley due to their annoyance over Everton’s finances from last season. Burnley’s relegation last season meant they missed out on valuable TV money and the drop meant they were forced to repay a £65m loan early.
Sean Dyche’s side are currently 17th in the Premier League, one point above the relegation zone with two games left to play. Leeds and Leicester are the two clubs set to join Saints in the Championship as things stand.
Leeds and Burnley wrote to the Premier League in May of last year to complain about Everton’s financial losses.
That letter sparked a 10-month investigation which led to formal charges from the league in March.
At the time, Everton said in a statement: “The club strongly contests the allegation of non-compliance and together with its independent team of experts is entirely confident that it remains compliant with all financial rules and regulations.
“Everton is prepared to robustly defend its position to the commission. The club has, over several years, provided information to the Premier League in an open and transparent manner and has consciously chosen to act with the utmost good faith at all times. The club will not be making any further comment at this time.”
In their most recent accounts the club attributed £90.4m in losses to the Covid-19 pandemic, yet that means their losses still stand at £223.1m over the past three years, well above the Premier League’s permitted limit.
