Paraag Marathe looking serious alongside Dan Friedkin wearing sunglasses

(Credit: Imago)

James Murray

Wed 24 September 2025 19:00, UK

Leeds United’s compensation details have been revealed following their previous dispute with Everton.

Leeds were one of five clubs to apply for compensation alongside Burnley, Leicester City, Southampton and Nottingham Forest after Everton were charged with a profit and sustainability (PSR) breach for 2021-22 and 2022-23.

A new development has revealed Burnley are suing Everton for £50million, with the case scheduled to begin last week at the International Dispute Resolution Centre in London.

Burnley are claiming they missed out on extra revenue following their relegation from the Premier League in 2021-22 – one of the seasons where Everton were found to have breached the PSR rules.

The Lancashire side, who finished third-bottom and four points behind the Toffees, are the only one of the five clubs to have taken the case to court.

Burnley owner Alan PaceCredit: ImagoHow much compensation could Everton pay Burnley?

Finance expert Stefan Borson told Football Insider Burnley have a case against Everton due to a “loss of chance” following their relegation from the top flight.

Everton could be forced to pay Burnley up to £10m in compensation if the Clarets are successful in their ongoing legal battle.

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There has so far been little information provided on whether the other clubs have also decided to take legal action against David Moyes’s side.

However, The Athletic reported on Tuesday (23 September) Leeds and Everton reached an out-of-court settlement earlier this year.

Paraag Marathe, Charman of Leeds and vice-charman of RangersCredit: Imago

Although the financial package remains undisclosed, the news outlet revealed Elland Road chiefs didn’t believe their case against the Toffees was strong enough to go to court.

Everton were docked a total of eight points in the 2023-24 campaign following their spending breaches, with top-flight clubs only permitted to make £105m of losses over a rolling three-year period.

Everton’s new owners could be forced to pay the compensation

There have been questions asked about who will pick up the bill for Everton following their settlement with Leeds and the ongoing battle with Burnley.

The Friedkin Group (TFG), which is spearheaded by Dan Friedkin, purchased Everton from former owner Farhad Moshiri last December.

Borson told Football Insider TFG likely agreed a deal with Moshiri to ensure some of the money from the takeover was kept back to pay any potential compensation.

EvertonCredit: Getty Images

Everton’s owners are looking to improve the club’s financial situation following their previous PSR issues under Moshiri.

The Toffees’ latest published accounts for 2023-24 revealed their revenue increased from £172m in 2022-23 to £187m, while their losses dropped from £89m to £53m across the same period.

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