Leeds, Leicester and Burnley come to agreement over potential Everton lawsuit | OneFootball

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The footballing world was left stunned in November as Everton were seemingly made an example out of as they were deducted 10 points from their Premier League tally.

An investigation and hearing had been ongoing for some time in regards to their breach of the Premier League's profit & sustainability rules in the 2021-22 season, where they were found to have made a loss of £124.5 million in the relevant period when you can only lose a maximum of £105 million.

Their £19.5 million overspend therefore saw them in trouble with the authorities, but it was referred to an independent commission who ruled what to do, and the result was one of shock.

A precedent has been set in regards to monetary misdemeanours in the top flight of English football, and it wasn't just the Toffees who had an interest in the case.

If Everton were found guilty and had points deducted, then a number of clubs were threatening to take legal action due to the fact that they believed the decision should have been made either at the end of the 2021-22 season or last season instead.

And when that decision did indeed come, it was reported by Matt Hughes of the Daily Mail that three clubs - Burnley, Leicester City and Leeds United - had confirmed their intentions to sue the Merseyside outfit for £300 million, and a deadline was set for that to go in.

However, it appears that the trio of scorned clubs have now come to a new decision on what to do - and it is one that will no doubt please Everton.

What have Burnley, Leicester City and Leeds decided to do regarding Everton punishment?

Per Hughes of the Daily Mail, the Clarets, Foxes and Whites are now actually going to drop their lawsuit against Everton, who have now filed an appeal against their punishment themselves.

It is believed that the three clubs do not wish to see Everton fall deeper into the mire and into administration through their claim, which at £300 million would almost certainly put their existence in danger.

That has come through further talks between the decision makers at the Premier League strugglers and the Championship promotion-chasing duo, who will now look to seek a negotiated settlement instead from the club instead of the £300 million lawsuit figure that was previously claimed.

The deadline is closing in on the clubs being able to make a claim to the independent commission, with the chair of the panel, David Phillips KC, claiming last year that they had a potential case for compensation.

And furthermore, if Everton did agree to negotiate with the three clubs who are chasing compensation for their survival in the Premier League as opposed to their own relegations, then the case would go to arbitration and would not go back to the panel that imposed the points penalty.

Everton's decision to appeal the points deduction however is set to drag things out further, although the Premier League are aiming to have the whole ordeal tied up within the next three months.