Burnley, Leeds United, and Leicester City have written a joint letter to Everton’s new potential owners, 777 Partners, disclosing their intention to sue the Merseyside club for a whopping £300 million ($366.01 million). The three English clubs would reportedly move forward with their lawsuit if Everton is found guilty of breaching spending regulations. An independent Premier League tribunal has been appointed and will rule on the matter on October 25.
English Clubs Demanding Compensation For Loss Of Revenue
According to the Daily Mail, Burnley, Leeds, and Leicester have penned a joint letter to 777 Partners, who are close to purchasing the Goodison Park outfit. In the letter, they have sought clarity and hinted at the consequences the new owners can face if Everton are found guilty at the end of the month.
The clubs believe Everton unjustly escaped relegation in the 2022-23 season. They think that an investigation should have been launched against the Black Watch last season itself and could have resulted in a severe point deduction. Instead, Everton were allowed to go about their business and escaped relegation by finishing 17th. Leeds & Leicester failed to get out of the relegation zone and were demoted to the second division.
The Mail previously reported that five clubs, including Southampton and Nottingham Forest, wrote to the Premier League last season. The matter has since been escalated and should reach its climax on October 25. If Everton are found guilty, Burnley, Leeds, and Leicester will each sue for £100 million, owing to the loss of top-flight income.
Everton Were Charged By Premier League In March
In March, the Premier League charged Everton after uncovering losses of £313.5 million ($382.43 million) over three years in the club’s books. According to Premier League Profit and Sustainability rules, a club should not incur losses over £105 million ($128.09 million) over a three-year period. The club can get £90.4 million ($110.28 million) written off on account of COVID-related losses, but they would still be well over the permitted limit.
If found guilty by the tribunal, a harrowing legal process could commence, jeopardizing 777’s takeover from current owner Farhad Moshiri. The Miami-based investment company has already loaned £20 million ($24.40 million) to Everton to deal with their cashflow problem.
The club’s losses raised eyebrows in the 2021-22 season as well, with the club recording a rolling loss of £372 million ($453.80 million). The Merseyside outfit managed to evade the charges due to allowances attributed to COVID. Burnley were one of the three teams that were relegated that season.
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