Overview

Everton Football Club could potentially face a nine-point deduction if Burnley, Leicester, and Leeds are successful with their £300 million compensation claim. The three clubs are reportedly preparing claims to sue Everton for £100 million each after being relegated from the Premier League in recent seasons. If successful, Everton's new owners, 777Partners, may struggle to pay the compensation, potentially leading the club into administration.

The Compensation Claim

According to the Daily Mail, Burnley, Leicester, and Leeds are preparing to sue Everton for £100 million each. The clubs claim that Everton's overspending contributed to their relegation from the Premier League. If successful, Everton could face a total compensation bill of £300 million.

Possible Administration

If Everton is unable to pay the compensation, it could lead to the club entering administration. This would result in a further nine-point deduction in addition to the ten points they were already docked for breaching Financial Fair Play rules.

Financial Fair Play Breach

Everton was recently docked ten points for breaching profit and sustainability rules. The club recorded financial losses of £44.7 million for the 2021-22 season, bringing their three-year total to £124.5 million. This exceeds the Premier League threshold, which allows a maximum loss of £105 million across three years, by £19.5 million.

Relegation Implications

Burnley, Leeds, and Leicester believe that Everton should have been docked points during the 2022/23 campaign, where they survived relegation by two points. Burnley, in particular, suffered relegation in 2022, with Everton's overspending helping them secure safety by just four points.

Conclusion

This is a developing story, and the outcome of the compensation claim is yet to be determined. If successful, Everton could face severe financial consequences and a potential nine-point deduction. The club's new owners may struggle to pay the compensation, potentially leading to administration. Stay tuned for further updates on this ongoing situation.

Source: The Sun