Stefan Borson: Everton could face '£15m' hit after compensation update

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Everton have faced issues complying with the Premier League's spending rules over the past couple of years following their financial struggles.

Burnley were one of five clubs alongside Leeds United, Leicester City, Southampton and Nottingham Forest to apply for compensation after Everton were charged with a profit and sustainability (PSR) breach for 2021-22 and 2022-23.

The Merseyside giants were docked eight points last season following their spending breaches, with top-flight clubs only permitted to make £105million of losses over a rolling three-year period.

David Phillips KC, the chairman of the commission that handed out the first points deduction, revealed he was satisfied the applicant clubs have potential claims for compensation.

The Lawyer reported on 12 March Everton have appointed Mark Howard KC to lead their case against Burnley this summer.

Finance expert Stefan Borson exclusively told Football Insider Burnley missed out on around £58million of broadcast revenue as a result of their relegation from the Premier League.

The Lancashire club finished third-bottom and four points behind Everton in 2021-22 before the Merseysiders were later found to have breached the PSR rules in that campaign.

Burnley suffered £58m hit after relegation blow

Borson revealed Burnley's compensation claim is likely to be worth between £10-15million.

He told Football Insider: "They lost around about £58million of broadcast money dropping out the Premier League and going to the Championship in that season.

"The complexity here is that Everton breached in 2021-22, but because of the delay in processing it, the penalty was applied in 2023-24.

"Burnley are saying 'Hang on a minute, what we are claiming is what would have happened but for the breach by Everton, so had Everton not overspent, we would have survived. That would either have happened because Everton got four less points or some other possibility'.

"There is a good chance that this is a loss of a chance claim. I think there’s a very good chance that Burnley can show causation here and can show that but for Everton's overspending that they would have survived.

"Therefore, they are entitled to a proportion of that lost revenue. Let’s say the headline is £58million in lost revenue.

"When you delve a bit deeper, there’s a few complexities there. First of all, Burnley had some very good clauses in their player contracts because they managed to drop their wage bill broadly 50 per cent in the Championship.

"Now net-net, when you take the fact that they got the parachute payment in the season that they were in the Championship following their relegation, they actually probably didn’t lose very much versus what their performance would have been financially in the Premier League.

"It might not be much more than £10million that they’re claiming for. Then the way this might work is that there might be an adjustment for it for percentage probability on a loss of a chance that they wouldn’t have been relegated, so it may be reduced by 25 or 50 per cent.

"I would think that you’re looking probably at best case £10million, maybe £15million."

Everton to face difficulties agreeing Richarlison deal

Football Insider revealed on 13 March Everton will find it "very difficult" to sign Richarlison this summer.

Tottenham are believed to be keen to recoup as much of the £50million-plus fee they paid to land the 27-year-old forward in 2022.

Richarlison told friends he wanted to quit Spurs in the January transfer window, with Saudi Pro League clubs registering an interest in signing him.

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