Leeds United and Burnley are reportedly threatening legal action against the Premier
League and Everton F.C.
financial rules.
Both clubs wrote to the league last week regarding Everton’s most recent accounts
which showed losses of £120.9m for the 2020-21 season.
League profitability and sustainability rules allow for losses of £105m over a three-
year period.
Everton say that Covid-19 losses over the past two seasons amount to £170m, which
can be deducted from their total.
But that figure has caused surprise among some Premier League teams because it
dwarfs clubs of a similar size.
Earlier this week, Newcastle posted Covid-19 losses of £40m over the past two
seasons, while Aston Villa said theirs amounted to £56m.
Everton, who have been involved in a relegation battle with Leeds and Burnley,
secured their Premier League status on Thursday with a 3-2 win over Crystal Palace.
But they are confident they are compliant with Premier League rules and have been
“working formally” with the league.
Burnley and Leeds want an independent commission to assess Everton’s finances
urgently.
It is understood they are viewing the matter as one of sporting integrity given that
the Toffees spent more money in the last transfer window by signing Dele Alli, Vitaliy
Mykolenko and Nathan Patterson in deals worth an initial £35m, rising to as much as
£70m.
Read Also:Everton move out of relegation zone with gritty win at Leicester
Burnley, Leeds and the Premier League declined to comment when contacted by BBC
Sport.
When releasing their accounts in March, Everton said their actual losses were about
£170m over three years because Covid losses can be written off, with the figure
calculated as an average over the last two seasons.
They said other costs, which can also be deducted, include spending on their new
Bramley Moore Dock stadium and on the club’s academy and the women’s team,
bringing their finances into line.
Everton said in March they remain in a “secure financial position” after further
support from their owner Farhad Moshiri, who has put more than £600m into the
club since he first bought shares in the club in 2016.
But they have suspended sponsorship deals with companies owned or part-owned by
Alisher Usmanov, after the Russian billionaire was sanctioned by the UK government
and the European Union following Russia’s invasion of Ukraine.
Usmanov is a close business associate of Moshiri and also paid Everton £30m for an
option on the naming rights of their as yet unbuilt stadium, which is set to open in
2024.
http://nationalsportslink.com.ng
