Relegation-battling Leeds United and Burnley write to Premier League over Everton's £371.8m losses

Leeds United and Burnley have written to the Premier League to ask if Everton's £371.8m worth of losses have breached financial regulations and if any sanctions will be imposed.

By Graham Smyth
Friday, 20th May 2022, 5:45 pm
Updated Friday, 20th May 2022, 5:47 pm

It is understood that the complaint has not yet led to legal action, but a letter from the two clubs was sent to the league last week to ascertain whether or not Everton's losses over the last three years have been investigated and if any punishment will be meted out to the Toffees.

Profit and financial sustainability rules permit losses of no more than £105m over three years, with sanctions for breaches including points deductions.

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In March Everton posted a loss of more than £100m for the third successive year but it was reported by PA Agency that there would be no penalties forthcoming due to the 'extenuating circumstances associated with Covid' and that the Premier League had been given access to the Toffees' latest accounts from last November onwards.

Speaking in April after the publication of Leeds United's annual accounts, football finance expert Kieran Maguire told the YEP that Everton's estimation of Covid costs, which sat at £170m compared with Leeds' estimation of £23m, was an 'outlier' in the Premier League.

"Aston Villa's estimate was about £60m over two seasons, Sheff United's was much lower and then we've got Everton," said Maguire.

"I think what they were claiming was that Covid hit them hard in terms of the ability to sell players. If they believe they maybe would have been able to sell Cenk Tosun for £60m in a non-Covid environment that's their call. I think as a football fan we might have an alternative opinion as to why they didn't have significant player sales, because their recruitment was poor. The Everton figures have raised many an eyebrow. They're an outlier rather than Leeds."

RELEGATION BATTLERS - Leeds United and Burnley have written to the Premier League over Everton's financial losses. Pic: Getty

News of Leeds and Burnley's complaint comes less than 24 hours after Everton secured safety in the Premier League with a win over Crystal Palace. Leeds are in the drop zone, level on points with 17th-placed Burnley but with a vastly inferior goal difference. On Sunday the Whites travel to Brentford and Burnley host Newcastle, as their 2022/23 fates are decided.

Leeds were approached by the YEP but had no comment to make.

According to The Times, an Everton spokesperson said: “We have worked so 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 they want to take legal action then they can do so by all means.”