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Leeds and Burnley threaten legal action against PL and Everton

Covered End
Covered End Posts: 51,981
in Other Football and Sports

The Premier League are facing the extraordinary prospect of being sued for £200million by Leeds or Burnley for failing to uphold their own financial rules.

The two relegation-threatened clubs wrote to the Premier League last week warning that they reserve the right to take legal action due to their failure to take any action against Everton for the club’s extravagant spending, which has led to them posting losses of £371.8m over the last three years.

Sportsmail revealed last month that Everton’s relegation rivals were preparing to take legal action due to what they regard as a flagrant breach of the Premier League’s profit and sustainability rules, which limit clubs to losses of £105m over three years, and with the final league positions to be determined this weekend after Frank Lampard’s side ensured their survival with a stunning 3-2 win over Crystal Palace on Thursday night they have sprung into action.

https://www.msn.com/en-gb/sport/football/leeds-and-burnley-threaten-legal-action-against-pl-and-everton/ar-AAXwA2f?li=AAnZ9Ug

Comments

  • Andyessgee90
    Andyessgee90 Posts: 844
    Everton have basically admitted the wrongdoing aswell. In reply they mention a large chunk was written off as covid related losses but that recorded losses were in excess of £170m over the three year period. 

    They spent around 60m in the January market and…arguably, Dele Ali was key in the comeback win. 

    As per usual though they’ll get fined a token amount and told how naughty they are. 

  • MuttleyCAFC
    MuttleyCAFC Posts: 47,728
    If you have these rules you do have to come down hard on those that break them.
  • ShootersHillGuru
    ShootersHillGuru Posts: 50,618
    I don’t blame Burnley and Leeds. The financial implications of relegation are enormous. Everton you could argue bought their PL survival in breach of the rules. I would think a substantial points deduction and fine is required in order to deter similar. The fine though is never going to come close to the loss Everton would have suffered had they not cheated and bought survival.
  • lordromford
    lordromford Posts: 7,767
    ShootersHillGuru said:
    I don’t blame Burnley and Leeds. The financial implications of relegation are enormous. Everton you could argue bought their PL survival in breach of the rules. I would think a substantial points deduction and fine is required in order to deter similar. The fine though is never going to come close to the loss Everton would have suffered had they not cheated and bought survival.
    This. I sympathise with Burnley and Leeds, just as I sympathised with Sheffield United when West Ham stayed up in 2007 through illegal player dealings.
    But, just like 2007, nothing will happen other than a fine. It’s shameful.
  • AddicksAddict
    AddicksAddict Posts: 15,780
    lordromford said:
    ShootersHillGuru said:
    I don’t blame Burnley and Leeds. The financial implications of relegation are enormous. Everton you could argue bought their PL survival in breach of the rules. I would think a substantial points deduction and fine is required in order to deter similar. The fine though is never going to come close to the loss Everton would have suffered had they not cheated and bought survival.
    This. I sympathise with Burnley and Leeds, just as I sympathised with Sheffield United when West Ham stayed up in 2007 through illegal player dealings.
    But, just like 2007, nothing will happen other than a fine. It’s shameful.
    If anything else does happen, the only guaranteed outcome is a lot of money in lawyers’ pockets. 
  • ShootersHillGuru
    ShootersHillGuru Posts: 50,618
    I’m not sure of the exact wording of the rule that Everton have breached but from what I so far know it looks like there’s no real defence. How can the PL defend any action brought by Leeds and or Burnley. Who would have to pay the £200 million x2 (?) Would the PL try to then re claim the cost from Everton by way of a fine. This one will run. 
  • Redrobo
    Redrobo Posts: 11,330
    Fine should be a minimum £270m which is the overspend, and there is a good argument that it should be doubled.
    A point deduction for every 1 million overspend should be written into the rules.

    They surely cannot ignore such blatant cheating.
  • Bournemouth Addick
    Bournemouth Addick Posts: 16,283
    Is anyone confident anything will happen whatsoever? I'll be amazed if it does. 
  • ShootersHillGuru
    ShootersHillGuru Posts: 50,618
    Bournemouth Addick said:
    Is anyone confident anything will happen whatsoever? I'll be amazed if it does. 
    Not confident but if nothing happens you might as well scrap the rule. Once the precedent is set it’s then anything goes. 
  • WelshAddick
    WelshAddick Posts: 1,321
    This seems a bit like Derby County.  Could be a fun watch. 
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  • guinnessaddick
    guinnessaddick Posts: 28,593
    edited May 2022
    WelshAddick said:
    This seems a bit like Wayne Rooney’s Derby County.  Could be a fun watch. 
    Frank Lampard’s Everton.
  • Chizz
    Chizz Posts: 28,330
    Can we just wait to see what Sue Gray has to say?
  • Chris_from_Sidcup
    Chris_from_Sidcup Posts: 35,994
    Fining them would just be stupid and solve nothing.

    They should be given a punishment that actually means something which realistically can only be a points deduction.
  • Rock Spectacle
    Rock Spectacle Posts: 1,440
    Agreed, never mind an allegedly dubious source of funding possibly from Eastern Europe 
  • SomervilleAddick
    SomervilleAddick Posts: 3,575
    edited May 2022
    Everton claim they lost £170m due to COVID, but their last accounts (20/21) which cover the first year of COVID and the main lockdowns show record income. 


    If these numbers are accurate, they lost out on about £11m of match day revenue. Even if that went over two years, that still isn’t £170m of COVID related losses. They are going to have to justify that number. 

  • IdleHans
    IdleHans Posts: 10,957
    The chief exec of Leeds thinks there is no need for an independent regulator of football. Tough shit.
  • Henry Irving
    Henry Irving Posts: 85,211
    IdleHans said:
    The chief exec of Leeds thinks there is no need for an independent regulator of football. Tough shit.
    Good point. 


  • MuttleyCAFC
    MuttleyCAFC Posts: 47,728
    Overspending punishments should be points based and unambiguous from the beginning. 
  • Andyessgee90
    Andyessgee90 Posts: 844
    MuttleyCAFC said:
    Overspending punishments should be points based and unambiguous from the beginning. 
    Absolutely this. Shouldn’t matter if it’s 50pence or £100m; if the regulation states X amount and you go over, immediate 9 point penalty. All this bullshit of ahh we need to go to an independent assessor, arbitration court, the milkman. If your accounts come out and you’ve overspent, the next day you have 9points deducted. 
  • guinnessaddick
    guinnessaddick Posts: 28,593
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  • Chris_from_Sidcup
    Chris_from_Sidcup Posts: 35,994
    edited May 2022
    Andyessgee90 said:
    MuttleyCAFC said:
    Overspending punishments should be points based and unambiguous from the beginning. 
    Absolutely this. Shouldn’t matter if it’s 50pence or £100m; if the regulation states X amount and you go over, immediate 9 point penalty. All this bullshit of ahh we need to go to an independent assessor, arbitration court, the milkman. If your accounts come out and you’ve overspent, the next day you have 9points deducted. 
    Completely agree but i think there should also be harsher punishments depending on the level of overspending.

    If you overspend by 10m over the 105m loss limit and are deducted 9 points, there's no way you should still only be deducted 9 points if you overspend by 300m. Even allowing for the losses they said were due to covid, they still have losses of over 200m, that's crazy.

    Also whilst i get why it was Burnley and Leeds complaining, i don't understand why other PL clubs aren't making more of a fuss of this. 
  • Henry Irving
    Henry Irving Posts: 85,211
    Chris_from_Sidcup said:
    Andyessgee90 said:
    MuttleyCAFC said:
    Overspending punishments should be points based and unambiguous from the beginning. 
    Absolutely this. Shouldn’t matter if it’s 50pence or £100m; if the regulation states X amount and you go over, immediate 9 point penalty. All this bullshit of ahh we need to go to an independent assessor, arbitration court, the milkman. If your accounts come out and you’ve overspent, the next day you have 9points deducted. 
    Completely agree but i think there should also be harsher punishments depending on the level of overspending.

    If you overspend by 10m over the 105m loss limit and are deducted 9 points, there's no way you should still only be deducted 9 points if you overspend by 300m. Even allowing for the losses they said were due to covid, they still have losses of over 200m, that's crazy.

    Also whilst i get why it was Burnley and Leeds complaining, i don't understand why other PL clubs aren't making more of a fuss of this. 
    Because turkeys rarely vote for Christmas 
  • Chris_from_Sidcup
    Chris_from_Sidcup Posts: 35,994
    Henry Irving said:
    Chris_from_Sidcup said:
    Andyessgee90 said:
    MuttleyCAFC said:
    Overspending punishments should be points based and unambiguous from the beginning. 
    Absolutely this. Shouldn’t matter if it’s 50pence or £100m; if the regulation states X amount and you go over, immediate 9 point penalty. All this bullshit of ahh we need to go to an independent assessor, arbitration court, the milkman. If your accounts come out and you’ve overspent, the next day you have 9points deducted. 
    Completely agree but i think there should also be harsher punishments depending on the level of overspending.

    If you overspend by 10m over the 105m loss limit and are deducted 9 points, there's no way you should still only be deducted 9 points if you overspend by 300m. Even allowing for the losses they said were due to covid, they still have losses of over 200m, that's crazy.

    Also whilst i get why it was Burnley and Leeds complaining, i don't understand why other PL clubs aren't making more of a fuss of this. 
    Because turkeys rarely vote for Christmas 
    True, i certainly wouldn't expect to see City and Newcastle rushing to complain but i'm surprised that other less financially backed clubs aren't complaining. The likes of Palace, Brighton, Southampton, Brentford etc.
  • Redrobo
    Redrobo Posts: 11,330
    edited May 2022
    City and Liverpool would soon complain if Newcastle over spend and win the title.

    They shouldn’t have to, but they would be wise to think about that now and push for points deduction against Everton and set the precedent.
  • Lincsaddick
    Lincsaddick Posts: 32,345
    I also posted this on the Premier League section 

    Burnley owners seek more loans to help the club cope with debt (msn.com)
  • Athletico Charlton
    Athletico Charlton Posts: 14,273
    Lincsaddick said:
    I also posted this on the Premier League section 

    Burnley owners seek more loans to help the club cope with debt (msn.com)
    Took a peak at their fans forum the other day and was amazed by the number of fans who did not blame their owners (actually stating that) but blamed Dyche for doing a poor job this season.  
  • ShootersHillGuru
    ShootersHillGuru Posts: 50,618
    Athletico Charlton said:
    Lincsaddick said:
    I also posted this on the Premier League section 

    Burnley owners seek more loans to help the club cope with debt (msn.com)
    Took a peak at their fans forum the other day and was amazed by the number of fans who did not blame their owners (actually stating that) but blamed Dyche for doing a poor job this season.  
    As a great man once said :

    First comes the delusion. Then comes the dawn of reality and then the tears flow.

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