Everton risk ‘administration’ and ‘further nine-point penalty’ if three clubs successfully ‘sue for £300m’

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Football365

·18 November 2023

Everton risk ‘administration’ and ‘further nine-point penalty’ if three clubs successfully ‘sue for £300m’

A general view outside Goodison Park.

Everton reportedly risk ‘administration and a further nine-point penalty’ if Burnley, Leeds United and Leicester City successfully sue them ‘for £300m’.

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It was confirmed on Friday that the Toffees have been deducted 10 points after they were found to have lost £124.5m over a three-year period up until the end of the 2021/22 season.

They were sanctioned by an independent commission as Premier League rules permit clubs from losing more than £105m over three years.

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It was later reported by The Daily Mail that Burnley, Leeds United and Leicester City have ‘agreed’ to ‘sue Everton for £300m’.

The report claimed: ‘Leeds and Leicester were relegated to the Championship and Burnley have leant their support as they remain convinced that Everton’s spending breached financial rules the previous season when they were relegated.’

A fresh report from The Daily Mail claims ‘Everton face being forced into administration and given another nine-point penalty that would almost certainly relegate them if a second independent commission rules that other clubs should be compensated for their spending breaches’. They explain.

‘Everton’s prospective buyers 777Partners have committed to providing around £20million-a-month to help with the club’s running costs whilst the Premier League are assessing their takeover bid, but Mail Sport has learned that they would not be willing to pay a compensation bill that could run into tens of millions of pounds. ‘The deal agreed by Farhad Moshiri and 777 in September contains clauses stipulating that the sale price will be reduced significantly if Everton are instructed to pay compensation or relegated from the Premier League. ‘Everton’s current regime lack the funds to settle a significant compensation bill, which would leave the club facing administration and the automatic nine-point penalty introduced by the Premier League in 2004.’

A separate report from Football Insider claims ‘Everton expect their 10-point deduction to be significantly reduced after their appeal’. The report later states.

‘Everton sources with knowledge of the situation have said the club are confident the 10-point punishment, which comes into immediate effect, will be “significantly reduced”. ‘The expectation is that the deduction will be potentially halved or more, to around the “three to six points” mark. ‘That would be a huge boost for Everton after they were hit with the biggest sporting sanction in Premier League history for breaching the financial rules and dropped immediately to 19th in the table.’