EXCLUSIVE: Everton face a further NINE-POINT deduction – and almost certain relegation – with Toffees set to be plunged into administration if Burnley, Leicester and Leeds are successful with £300m compensation claim against Toffees


Everton face administration and a further nine-point penalty, which would almost certainly see them relegated if a second independent commission rules that other clubs should be compensated for their spending breaches.

Mail Sport revealed on Friday that Burnley, Leeds and Leicester are pressing ahead with plans to make a damages claim against Everton, which would be heard by another three-man panel appointed by the Premier League before the end of the season.

Everton’s potential buyers, 777Partners, have committed to providing around £20 million a month to help with the club’s running costs while the Premier League assesses their takeover bid, but Mail Sport has learned they are unwilling would be to pay a compensation bill running into tens of millions of pounds.

The deal agreed by Farhad Moshiri and 777 in September includes clauses stating that the sale price will be significantly reduced if Everton are ordered to pay damages or be relegated from the Premier League.

Everton’s current regime does not have the resources to pay a significant compensation bill, which would leave the club facing administration and the automatic nine-point penalty introduced by the Premier League in 2004.

Everton will face a £300m lawsuit from rival teams following their 10-point deduction for breaching Premier League spending rules, something the club is strongly addressing

Everton’s current regime led by owner Farad Moshiri does not have the resources to pay for a significant compensation bill, which would see the club put into receivership if ordered.

Josh Wander (left) is leading the takeover of 777, which is yet to be approved but the group is unwilling to pay a compensation bill that could run into tens of millions of pounds

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Although Sean Dyche’s side are just two points from safety despite gaining ten points on Friday, the nine-point loss would almost certainly seal their fate.

In an interim hearing before the appointment of the independent commission last May, David Phillips KC ruled that Burnley, Leeds and Leicester, whose claim was first revealed by Mail Sport, had a case.

“I am satisfied that the applicant clubs have potential claims for compensation,” Phillips wrote in a judgment first published on Friday.

It is believed that the three clubs are preparing a claim for £100 million each based on the loss of Premier League revenue as they have all been relegated in seasons where Everton have been found guilty of overspending, although such claims are seen as wildly optimistic seen. The amount of compensation to be paid would be determined by a second independent committee if it finds Everton liable.

Burnley, Leeds and Leicester have 28 days from Friday’s ruling to formally lodge their claim, with the Premier League confident it will be heard before the end of the season, as will Everton’s planned appeal against the 10 point penalty.

“These claims and their validity depend on whether the complaint is upheld,” Phillips added in his May ruling.

Manager Sean Dyche sees his 19th-place side facing the 10-point penalty, with any further deduction likely to see Everton relegated from the Premier League

777 have already loaned Everton more than £40 million, with the understanding that this debt will be converted into shares in the club if their takeover takes place.

If the US investment company pulls out or their proposal is rejected by the Premier League, they would become secondary debtors and be put at the back of the queue to be repaid by Everton, behind their other financiers Metro Bank and MSP Capital, as well as others creditors.

Everton is only the third club in the history of the Premier League to receive a points deduction.

Middlesbrough were awarded three points in 1997 after refusing to play a match against Blackburn due to illness in the squad, while Portsmouth lost nine points in 2010 after going into administration.

Both clubs were relegated to the Championship at the end of the respective seasons.


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