Premier League rules allow clubs to lose a maximum of £105m over three years; clubs have been allowed to write off losses caused by the pandemic; in their latest accounts Everton said £170m of their losses were caused by the pandemic
Saturday 21 May 2022 15:19, UK
Everton insist they are "confident" they have complied with Premier League Financial Fair Play rules amid threats of legal action from Burnley and Leeds.
Leeds and Burnley wrote to the Premier League last week to question whether they had broken Financial Fair Play (FFP) rules after they recorded losses of £371.8m over the last three years.
A second joint letter has been submitted to the Premier League asking them to make sure Everton keep all emails and data related to their business activities.
In an exclusive in The Times newspaper on Friday afternoon, it was reported that Leeds and Burnley also indicated their right to make legal claims against the league and Everton.
Premier League rules allow clubs to lose a maximum of £105m over three years. Clubs who break the Premier League's Profitability and Sustainability rules can be fined or deducted points.
Clubs have been allowed to write off losses caused by the pandemic; in their latest accounts Everton said £170m of their losses were caused by the pandemic.
Either Burnley or Leeds will be relegated on Sunday but both clubs are committed to seeing this course of action through to the end regardless of which division they are playing in next season.
Burnley and Leeds want Everton's finances thoroughly investigated and have asked for an independent commission to be set up to decide whether Everton have broken Premier League rules and whether they have a case to answer.
They have asked for the commission to be set up within six weeks of the date of their letter (May 13). If there has been a breach they want rules to be enforced, and the maximum punishment is a points deduction.
They want this dealt with before next season's fixtures are released on June 16. They want a quick resolution - unlike the Premier League's investigation into Manchester City's alleged breaches of financial fair play rules which have been going on for more than three years.
There is believed to have been encouragement from other Premier League clubs to take this course of action.
A joint letter was sent to Premier League chief executive Richard Masters by email on 13 May, signed by Burnley chairman Alan Pace and Leeds United chief executive Angus Kinnear.
Burnley or Leeds will be relegated on Sunday, while Everton avoided relegation by beating Crystal Palace on Thursday night.
An Everton spokesman said: "We have worked closely with the Premier League to make sure we are compliant. We are comfortable we have complied with the rules.
"External auditors have told us what we can and cannot claim against the pandemic. If clubs want to take legal action that's their decision."
The Premier League, Burnley and Leeds declined to comment when contacted by Sky Sports News.