Everton points deduction committee to rule on potential £50m Leeds United compensation claim — YEP 21/11/23

The same individuals who decided on Everton's ten-point deduction will also rule on whether applicant clubs Leeds United, Burnley, Leicester City, Southampton and Nottingham Forest are due financial compensation relating to the Toffees' breach of profitability and sustainability rules, according to The Times.

By Joe Donnohue

A report in the national newspaper states the same commission, made up by the likes of David Phillips KC, Alan Greenwood and Nick Igoe, which handed down the Premier League's largest points-related penalty last week, will also decide whether clubs pursuing a compensation claim are eligible for damages.

Leeds were one of five clubs who had previously expressed their willingness to pursue legal action against the Merseyside club, as the two teams battled to stay in the Premier League during 2021/22. It is thought any compensation claim Leeds pursue would be less lucrative than Burnley and Leicester City's - both of whom were relegated in 18th place during the past two seasons, in which Everton escaped dropping into the Championship.

The Times' report reads: "Had Everton’s points deduction had been applied last season, then it would not have prevented Leeds being relegated but the club would have finished one place higher in the Premier League table, meaning an extra £2.2million in income."

Commission lead Phillips has previously stated he is 'satisfied that the applicant clubs have potential claims for compensation', but ensured damages claims would be dealt with as a separate issue from Everton's Premier League punishment. Teams have four weeks from last Friday when the points deduction ruling was issued to formally pursue a damages claim against Everton.

Southampton and Nottingham Forest's claims are likely to be thrown out if pursued, due to the fact the Saints finished bottom, while Forest stayed up in 16th place, and an Everton points deduction imposed last season would not have impacted where either team finished.

Leicester and Burnley, on the other hand, could be due up to £50 million in damages - a rough estimation of lost earnings from one year spent outside the Premier League - as Everton would have been relegated in each of the last two seasons if their deduction had been applied in 2021/22 or 2022/23.

Phillips' ruling also states: “Those claims and their validity depend on whether the complaint is upheld. They depend on factual circumstances concerning the causation of any loss and they depend on other factual issues.

“If the complaint is upheld, the commission may wish to award compensation to one or more of the applicant clubs."

Everton have expressed their intention to appeal the points deduction, which is due to be heard before the end of the 2023/24 season. Any compensation case will be required to take the outcome of Everton's appeal into account.