- The 8-point deduction dropped Everton from 12th to 15th in 2023/24
- To comply with PSR, Everton had to maintain a strict positive transfer balance.
- Landmark legal ruling ordered Everton to pay Burnley £40 million
Everton’s battle with the Premier League’s Profit and Sustainability Rules (PSR) is one of the defining stories of the club’s recent history.
While the focus has often been on the points deductions themselves, the wider financial consequences continue to impact the club. From lost Premier League prize money to restrictions on transfer spending and most recently legal action from a rival club, the effect of Everton’s PSR breaches has been far-reaching and for the fans, seemingly without end.
Everton lost millions through Premier League merit payments
One of the most immediate financial consequences of Everton’s points deductions was the loss of Premier League merit payments.
During the 2023/24 campaign, Everton were docked a total of eight points for breaches of the Premier League’s PSR regulations. Despite accumulating enough points on the pitch to finish 12th in the table, the deductions pushed Sean Dyche’s side down to 15th in the final standings.
That drop came at a significant cost. Premier League merit payments are distributed according to league position, meaning Everton received £10.1 million for finishing 15th. Had they retained all eight points and finished 12th, they would have earned £15.2 million – the amount awarded to Bournemouth.
PSR forced Everton to rethink transfer spending
The financial restrictions created by PSR have also had a major influence on Everton’s transfer strategy.
During the early years of Farhad Moshiri’s ownership, Everton spent freely in the transfer market. However, the tail end of his reign told a very different story. According to Transfermarkt’s five-year transfer comparison, up to the end of the 24/25 season (during which Moshiri finally sold the club), Everton had a positive balance of £28.3m. No other club consistently in the Premier League over that period enjoyed a positive balance. In fact, the majority of clubs accumulated transfer deficits worth hundreds of millions of pounds.
The numbers illustrate how PSR regulations—and the threat of further points deductions—forced Everton to carefully manage both transfer fees and wage commitments to remain compliant.
Player sales became increasingly important, while recruitment focused on lower-cost deals, free transfers and loan signings. Although this approach improved financial sustainability, it inevitably limited the club’s ability to strengthen the squad compared to its competitors.
That Everton somehow navigated this period without getting relegated is something of a minor miracle.
The Burnley case: A landmark financial blow
The consequences of Everton’s PSR breaches did not end with points deductions. In a landmark legal battle that has recently concluded, Everton have been ordered to pay Burnley £40 million in compensation for their PSR breach.
Burnley’s legal team successfully argued that Everton’s financial rule-breaking gave the Toffees an unfair sporting advantage during the 2021/22 season. The Clarets maintained that if the Premier League had hit Everton with a points deduction during that campaign—rather than years later—the league would have relegated the Toffees instead of Burnley.
The £40 million figure represents a significant portion of the revenue lost by Burnley due to their drop into the Championship.
Conclusion: The true price of non-compliance
Ultimately, Everton’s brush with PSR proves that financial rule-breaking punishes a club far beyond the initial hit to the league table—it triggers a long-lasting, multi-front financial drain.
When you add up the losses, the true cost of non-compliance becomes staggeringly clear:
- £5.1 million lost instantly in 2023/24 Premier League merit payments.
- £40 million owed to Burnley in a historic compensation ruling.
- Hundreds of millions in lost competitive edge, forcing a near-break-even transfer model over five years while rivals spent freely.
For the hierarchy, the manager, and the fans, the message from the Premier League and the courts is unmissable: the sporting penalties may end when the season concludes, but the financial hangover lasts for years.
