Everton’s £35m Burnley case raises uncomfortable questions after fresh development

Fresh concerns surrounding Burnley’s parent company have brought Everton’s £35m compensation case back under scrutiny as the club waits for its appeal to be heard.

Velocity Capital (UK) Holdings Ltd has received a compulsory strike-off notice over overdue accounts, although that does not mean Burnley are insolvent or unable to repay Everton should the Blues eventually win their appeal.

Everton’s previous warning back in focus

Everton were ordered to pay Burnley £26m in damages plus around £9m in interest over their 2021/22 PSR breach. Before making that payment, they argued there was a “real risk” the money might be difficult to recover if the decision was overturned.

The club sought a stay and proposed alternatives including putting the money into escrow or requiring a bank guarantee. Those requests were rejected, meaning Everton were required to pay while continuing to challenge the original decision.

That history has prompted renewed criticism from supporters, with Citizens of Suburbia questioning the process and pointing towards the commission’s previous involvement with Everton.

David Phillips KC, HH Alan Greenwood and Nick Igoe also formed the three-person commission which imposed Everton’s original 10-point PSR deduction in 2023. That punishment was subsequently reduced to six points on appeal after two of Everton’s nine grounds were upheld.

None of that establishes bias in the compensation proceedings, and Premier League commissions are appointed independently of the league and its clubs. But the latest development inevitably puts Everton’s unsuccessful attempt to protect the £35m payment back into focus.

Velocity’s current Companies House position does not establish that Burnley could not return the money, while ALK Capital says it is working to resolve the overdue filings. Everton must first win their appeal. Until that process is concluded, however, the concern they raised before handing over £35m remains unresolved.

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