EVERTON have been ordered to pay Burnley more than £35million in compensation after they were sued over Premier League profitability and sustainability breaches from the 2021-22 season when the Clarets were relegated, it was reported today.

The Toffees were deducted 10 points in late 2023 for financial misdemeanours, a punishment reduced to six points on appeal a few months later, under the previous regime of Farhad Moshiri.

Everton finished four points above 18th-placed Burnley in 2021-22 but the Lancashire club successfully argued that had the six-point penalty for PSR breaches been applied that season then they would have survived at the Toffees’ expense.

Angry Toffees officials have lodged an immediate appeal at what they view as a “flawed” judgement.

“Everton Football Club is surprised and angered by the decision of a Premier League Independent Disciplinary Commission to order a compensation payment to Burnley Football Club in relation to Everton’s PSR breach in June 2022,” said a club statement.

“Everton has appealed the decision and is clear in its belief the ruling is fundamentally flawed in both law and fact.”

Everton’s compensation order was £26m, plus interest of £9.1m, but there is more interest to be added on which could take the total close to £40m.

Burnley are believed to have sought £51.7m in recompense but Everton fundamentally disputed the calculation of the extent of the financial loss.

Other clubs had explored the possibility of suing but did not proceed and there are no further cases outstanding against the club.

Everton were judged to have overspent by £19.5m for the accounting period. However, they argue they were unaware they were going to be in breach and there were six weeks between Burnley being relegated and the end of their financial year when they could have taken steps to avoid the breach.