Everton fear being ‘sued’ for ‘£300m’ by ‘bitter’ PL relegation rivals over ‘breaching spending rules’

Four Premier League clubs believe they are ‘entitled to compensation’ and could sue Everton ‘if they are found guilty of breaching spending rules’, according to a report.

Everton are currently 17th in the Premier League table, one point above the relegation zone with two games remaining.

Southampton are the only club to be relegated to the Championship so far this term and have the worst goal difference in the top flight having lost 24 matches this season.

have been a shambles in recent seasons off and on the pitch and the club’s fan base has held protests against their owners, who have been advised not to attend matches at Goodison Park over fears for their safety.

Last month, the Everton Fan Advisory Board called for club chair Bill Kenwright to be replaced.

They said: “The chair of any organisation has a core responsibility for leading the board, ensuring its focus on strategic matters and direction, overseeing the company’s business, and setting high governance standards.

“The situation as it stands is not sustainable, not befitting of our great club and as Evertonians we do not deserve it. After careful consideration, we are therefore making a call of no confidence in the current chair of Everton Football Club.”

Everton were charged with breaking Premier League spending rules in March but the legal case against them will not be heard until the summer.

And if the Toffees avoid relegation to the Championship, Southampton, Leicester City, Leeds United, Nottingham Forest and Burnley will prepare legal action, according to the Daily Mail.

The Merseyside club could be sued for up to £300million as all of the clubs mentioned ‘believe they are entitled to compensation from Everton if the club are found guilty of breaching spending rules’.

The clubs have ‘applied’ for Everton’s disciplinary hearing to be brought forward so any sanctions, including a possible points deduction, can come into effect this season.

This request was ‘rejected’ which has ‘led the clubs to lodge legal papers with the top flight which make them a party to the dispute’.

Burnley could file a separate claim, however, as they still feel hard done by having been relegated last season.

‘The claim for £100m-per-club is understood to be an estimate of the loss of Premier League income for one season after the deduction of parachute payments,’ the report adds.

The report goes on to say that Leeds and Burnley ‘threatened legal action’ last year ‘amid suspicions that their three-year rolling losses of £372m breached Profit and Sustainability (P&S) rules’.

This case failed to materialise as ‘the Premier League provided reassurances that the club’s spending complied with the regulations, due to allowances made for the impact of Covid’.

Profitability and Sustainability rules prohibit clubs from recording losses of ‘more than £105m over a three-year period’, though clubs can claim allowances for losses attributed to Covid and ‘spending on infrastructure, women’s football and community projects are deducted from the calculations’.

Everton lost £313.5m over the last three years, which is why they were charged in March. They said Covid contributed to £90.4m of the losses, which still leaves them way above the limit.

Should these lawsuits come to fruition and go against Everton, they could go into administration and would obviously further damage their woeful financial situation.

Burnley ‘remain bitter’ over going down last season despite securing promotion back to the Premier League at the first time of asking.

The Clarets have suffered a loss in TV revenue and their relegation triggered an early-repayment clause in a £65m loan from MSD Capital.

The report adds: ‘Everton insist they have complied with the regulations and have vowed to robustly defend themselves against the charges. The Premier League declined to comment.’