The Clarets claim they are owed compensation after Everton were found in breach of the Premier League’s profitability and sustainability rules (PSR).
Had the points deduction been applied the previous season, Burnley would have avoided relegation with Everton dropping into the bottom three instead.
The Clarets suffered a drop in revenue as a result of their demotion to the Championship (Photo: Getty)
It is understood that Burnley, who were relegated in 2022, will argue they are entitled to compensation because Everton gained sporting advantage by breaching those rules.
Lawyers on both sides have spent around a year preparing their case, which will be heard in private.
Burnley’s general counsel, Amy Wells, was Everton’s head of legal from July 2017 to December 2022. She joined Burnley in April 2024.
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Burnley’s legal team will need to prove a link between the club’s relegation and any sporting advantage Everton benefited from due to the breaches, which took place during the ownership of Farhad Moshiri.
The Toffees were subsequently hit with a 10-point deduction in November 2023 for breaching PSR rules over a rolling three-year period that included the season in which Burnley went down.
It is potentially a significant case for the Premier League with Manchester City’s 115-charge verdict looming on the horizon.
If Burnley are successful, it would also mean other clubs could mount similar claims against rivals that breach spending rules in the future.
Burnley and Everton declined to comment when contacted by The i Paper.
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Uefa requires all clubs playing in its competitions to limit expenditure on wages and transfer fees to a maximum 70 per cent of revenue – known as squad cost ratio rules.
The Premier League rules differ by allowing clubs to lose a maximum of £105m over three years. But the top flight is expected to adopt similar squad cost ratio rules in the coming seasons.
In recent years, the Premier League issued points deductions to Everton and Nottingham Forest, although every top-flight club passed the league’s PSR audits last season.
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