Everton to face another nine-point deduction if Burnley, Leicester, Leeds are successful with £300m compensation claim
Everton could face further nine-point deduction if Burnley, Leicester, Leeds are successful with their £300m compensation claim.
Everton’s prospective buyers 777Partners had committed to providing £20 million per month to support the club’s running costs during the Premier League’s assessment of their takeover bid.
However, they may not be willing to cover a compensation cost reaching tens of millions of pounds.
The deal between Farhad Moshiri and 777 in September includes clauses reducing the sale price significantly if Everton is instructed to pay compensation or faces relegation.
Their current financial constraints mean Everton could struggle to settle the huge compensation bill, and could result to an automatic nine-point reduction, a scenario said to have introduced by the Premier League in 2004.
According to Mail Sports, the compensation claim initiated by Burnley, Leicester and Leeds, could amount to £100 million each, based on the loss of Premier League income during seasons when Everton overspent.
If Everton fails to address these challenges, it could become the third club in Premier League history to suffer points deductions.
They will follow Middlesbrough, who suffered such fate in 1997 and Portsmouth in 2010. Both teams were also subsequently relegated.