Three clubs drop plan to sue Everton after 10-point deduction, opt for cash settlement talks
The ongoing dispute between Everton and three Premier League clubs over compensation claims has taken a new turn. Burnley, Leeds, and Leicester, who previously served notice of their intention to sue Everton for £100m each, are now considering a negotiated settlement instead. This development comes after Everton was hit with a ten-point deduction for breaching financial rules, raising doubts about the club’s ability to pay any potential fines. The clubs are now leaning towards private discussions with Everton, as they are conscious of not wanting to push the cash-strapped club into administration. The potential withdrawal of the compensation claims could lead to the case being resolved through arbitration rather than being heard by the league’s independent commission. The decision to pursue a negotiated settlement comes after Everton recorded financial losses that exceeded the Premier League threshold, prompting the punishment and raising concerns about the club’s financial stability.
Three Premier League clubs, Burnley, Leeds, and Leicester, are reconsidering their claim for compensation against Everton and are now looking to reach a negotiated settlement. The clubs had initially served notice of their intention to sue Everton last May, but are now leaning towards private discussions with the club instead.
The potential lawsuit came after an independent commission chaired by David Phillips KC ruled that Everton had breached profitability and sustainability rules, leading to a nine-point deduction. The trio of clubs were preparing to sue for £100m each after being relegated from the Premier League in recent seasons, with the Toffees facing a potential £300m in compensation.
However, with Everton’s financial struggles becoming apparent, the aggrieved clubs are conscious of not wanting to push the club into administration. Everton are currently relying on loans from prospective buyers 777Partners, and face the possibility of further penalties if they are unable to pay any fines imposed.
The three clubs are now considering entering arbitration with Everton instead of going through the independent commission, as their case would have originally been heard. Everton’s breach of profit and sustainability rules saw them record financial losses that exceeded the Premier League threshold, leading to their ten-point deduction.
Burnley, who were relegated in 2022, claim that Everton’s overspending contributed to their relegation, while Leeds and Leicester, who were relegated last season, argue that Everton should have been docked points during the 2022/23 campaign. Ultimately, the three clubs are now looking to find a resolution through negotiation rather than pursuing a lawsuit.
