Everton's PSR nightmare casts a long shadow

The hope was that Everton's unprecedented points deductions last season for PSR breaches were the end of the matter but there are two issues that continue to linger in the background.  

It seems that in addition to the as-yet unresolved argument over interest paid on loans for which Everton claim exemption because they were stadium-related, the question of compensation for other clubs suffering as a result of the supposed "sporting advantage" the Blues gained from their over-spending still hasn't gone away, with the case that Burnley brought last year still unresolved.

The Times report:

Burnley are still involved in a compensation claim against Everton relating to the Merseyside club’s six-point deduction for breaking Profitability and Sustainability Rules (PSR) in the 2021-22 season. The first judgment in the Everton case was in November 2023 and sources with knowledge of the process said it could be another full year before there is an outcome.

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In the Everton PSR case, five clubs initially applied for potential compensation — Burnley, Leeds United, Leicester City, Nottingham Forest and Southampton. When Everton’s points deduction was reduced from 10 to 6 after an appeal, it meant that only Burnley would have avoided relegation had the sanction been applied in the 2021-22 season — when the transgression took place — so the other clubs withdrew their applications.

However, the same commission that imposed a ten-point deduction on Everton is also deciding on the compensation for financial damages connected to the case, with its chairman, David Phillips KC, saying [in the commission findings]: “I am satisfied that the applicant clubs have potential claims for compensation.”

Everton initially challenged that position given that their 10-point sanction was reduced by a different commission, and there are still many legal arguments in the case, including over the sum Burnley would be entitled to in damages.

Meanwhile, the Times restate that the commission examining Everton's second PSR breach asserted that the issue of stadium interest payments was too complicated for them to resolve and they suspended judgement until some unspecified time. 

That judgement had been expected some time before the end of this year but there is no indication of when the matter will be adjudicated.

 

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