Everton already warned Burnley may struggle to repay £35m if appeal succeeds

Everton raised concerns over whether Burnley would be able to repay the money awarded to them if the Blues succeed with their appeal against the compensation ruling.

The question has resurfaced among Evertonians on X following discussion over why the club paid Burnley while continuing to challenge the decision. Documents from the case show that Everton had already raised the same concern.

Everton were ordered to pay Burnley £26m in compensation plus approximately £9.1m in pre-award interest following a claim arising from the club’s previous breaches of the Premier League’s Profitability and Sustainability Rules. The club disputes the compensation ruling and have described it as “fundamentally flawed in both law and fact”, with their appeal due to be heard in January 2027.

Everton raised Burnley repayment risk

The Toffees applied for enforcement of the award to be stayed pending the outcome of their appeal. According to the commission’s published decision, the club argued there was a “real risk” that Burnley could be unable to repay the money should the appeal succeed.

Everton proposed alternatives, including placing the money in escrow or requiring Burnley to provide a bank guarantee. The commission rejected the application for a stay, although it accepted there was “some force” in Everton’s concern over Burnley’s financial position.

The decision recorded Burnley’s July 2025 accounts as showing £62m of net current liabilities and £142m of financial debt. It also noted that Burnley’s auditor had identified a material uncertainty relating to going concern, dependent on factors including player trading and continued support from the club’s parent company.

Despite those concerns, the commission concluded that Burnley would probably be capable of repaying Everton if required. If Burnley failed to do so, it said the Football Creditors Rule meant Premier League Central Funds otherwise payable to Burnley could instead be used towards satisfying money owed to Everton.

All will be revealed in January

That could leave Everton recovering the money over time rather than receiving it all back immediately. The commission said it was satisfied that, through those arrangements, “the full amount due would be paid”.

So the possibility of Everton winning their appeal and then having difficulty getting their money back isn’t a new hypothetical. The club raised it during the proceedings and asked the commission to deal with it before the appeal was heard.

There is nothing in the commission’s decision to suggest the Premier League would automatically become liable for the sum if Burnley were unable to repay it. The route set out in the decision instead involves Burnley’s finances and, if necessary, money due to the club through Premier League Central Funds.

For now, the compensation award remains in place while Everton pursue their appeal. January could determine whether Burnley ultimately keep the money or have to give it back.

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Gary is an experienced football journalist who has written for, among many others, BBC Sport and The Metro, and is now the editor of ReadEverton.com. He leads daily coverage of Everton news, transfers and analysis as part of the dave.sport network. He also writes for ReadManCity.com, ReadMotorsport and ReadNorwich within the same network. When not writing, he enjoys a nice cold pint of Guinness and trips to the cinema ... not always at the same time.

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