Burnley's £35m Everton award puts Man City at risk of £100m-plus rival claims

A Premier League arbitration commission has ordered Everton to pay Burnley more than £35m in compensation — including £26m for losses tied to relegation and £9.1m in interest — after ruling that Everton’s breach of Profitability and Sustainability Rules conferred a sporting advantage on the Merseyside club. Everton are appealing the decision.

The ruling is being watched closely in the context of Manchester City’s ongoing fight against 115 alleged breaches of Premier League financial rules, because it establishes that clubs can pursue compensation through arbitration even though Premier League rules bar them from suing each other through the courts.

Four of City’s direct rivals — Arsenal, Liverpool, Manchester United and Tottenham Hotspur — served legal notices on City in 2024, reserving the right to seek compensation should City ultimately be found guilty. Those notices were filed on the advice of lawyers who flagged a potential six-year statute of limitations period dating back to November 2018, when the Football Leaks documents were first published by Der Spiegel.

The alleged breaches span the period between 2009 and 2017, during which City won multiple Premier League titles. The four clubs can argue that any proven sporting advantage denied them league finishes, trophy revenue and, critically, Champions League qualification income across several seasons.

According to The Times, sources involved in the process say some of those clubs have calculated potential losses at significantly more than £100m each. Were interest to be applied on top — as it was in the Everton-Burnley case — the total exposure for City could rise substantially higher.

In the Everton arbitration, the commission noted that the club “accepted that its breach of the PSR conferred a sporting advantage but disputes both the extent and effect of that advantage.” Everton’s expert witness argued Burnley had suffered no financial loss following relegation; Burnley’s expert put the figure at £51.7m before interest. The commission ultimately settled on £26m for the relegation losses.

That methodology — quantifying the downstream financial harm caused by a rival’s rule breach — is precisely the framework City’s accusers would look to apply if the Premier League’s independent commission finds the club guilty. City have denied all charges and their hearing, one of the most complex in English football history, is ongoing.