Premier League club launch £50m lawsuit against own league rivals

The court battle is set to commence later this week

PSR are the set of rules that were brought in to replace the older Financial Fair Play regulations.

Their function is to prevent Premier League clubs from gaining an unfair advantage by spending beyond their means.

At their core, PSR rules prohibit clubs from losing more than £105 million over any consecutive three year period.

In recent years, both of Everton and Nottingham Forest have been charged and have faced points deductions for breaching PSR rules.

In November 2023 Everton were handed down a 10-point deduction, which was then reduced to six on appeal, for a £19.5m overspend of Premier League PSR rules.

Forest were deducted four points for a similar breach in the Spring of 2024.

The pending court case relates to Merseyside-based Everton, who are said to be subject of a legal challenge from newly-promoted Burnley.

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Burnley are said to be arguing that had the points deduction been applied in the previous season, 2022-23, the Clarets would have avoided relegation and Everton would have dropped into the Championship in their place.

The Lancashire outfit plan to claim that they are entitled to compensation for the revenue they lost as a result of their relegation.

According to The I Paper, the case will be heard in private at the International Dispute Resolution Centre in London midway through this week.

Neither of Burnley nor Everton are yet to comment on the case.

As the case is to be heard in private, it is possible that the public may never be made aware of its conclusion.

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