In what is proving to be one of the tightest and dramatic relegation battles in Premier League history, there could yet be another twist as Leicester City are amongst five clubs looking to sue Everton for a combined £300million. The threat of legal action comes after the Toffees were charged with breaching Financial Fair Play (FFP) rules in March.
Everton were found to have breached Financial and Sustainability rules after they posted their annual losses in March. FFP rules dictate that clubs are forbidden losses of over £105m across a three-year period, whilst Everton’s figures show a loss of over £313.5m in that time period.
Whilst some may point to Covid-19 as the reason for such losses, the figures show that the pandemic is only responsible for £90.4m of that figure, leaving over £200m lost regardless. If found guilty by the league, Everton could face a hefty fine, points deduction, or a transfer ban. The club insist their innocence in the matter.
Due to the major financial hit that relegation from the Premier League brings to teams, it’s been reported by the Daily Mail that Southampton, Leicester City, Leeds United, and Nottingham Forest all believe they will be entitled to compensation if they are relegated to the Championship. Meanwhile, Burnley also feel they are entitled to compensation after their relegation last season, despite the club securing promotion at the first time of trying.
As well as they money, the five clubs are also pressuring the PL to fast-track the case in order for the punishment to be dealt before the end of the current season. The clubs hope that a points deduction for Everton will see two of Leicester, Leeds, or Forest avoid relegation.
It is unlikely that the case can be fast-tracked which has led to the clubs readying their compensation claims. As per The Mail, ‘[w]hile five clubs have formally registered their grievance, the £300m claim would ultimately be brought by the two clubs relegated along with Southampton if Everton survive’. The claim – if successful – would see the three relegated teams recoup £100m each.
Foxes of Leicester’s opinion on Leicester City situation
To be frank, the whole case stinks of desperation – understandable given the financial gap between the two divisions. But a reliance on Everton even being found guilty, let alone rushing a verdict, shows just how quickly the clubs are willing to point their fingers rather than acknowledge their own failings.
Leicester City aren’t 19th because Everton possibly breached FFP, they are there because of their own mismanagement. They can only blame themselves. The club wouldn’t be where they are if they had recruited smartly over the last 24 months, or if they hadn’t been so reluctant to sack Brendan Rodgers.
Perhaps the most embarrassing aspect of this – from a Leicester view – is even if the case is fast-tracked and Everton are found guilty, a points deduction would still see the Foxes relegated as they would only climb to 18th in the table.
The darkest part of this whole situation is what the £300m compensation could do to EFC. If they are fined by the Premier League, Everton would be pushed into a dangerous financial position. If they were then ordered to pay £300m compensation, it would surely put the club into administration and could see them liquidated.
We know that football is a game of greed, but to see clubs actively pursue this punishment is depressingly bleak. The number of lost jobs this would cause and the consequences it would have for the economy of Liverpool would be devastating. We shouldn’t be perusing or willing the destruction of other clubs, not after the recent cases of Bury and Wimbledon.
As previously stated, if Leicester go down, it’s because of their board, of their decisions, not down to anyone else. Perhaps the future of the Foxes can only be fixed by addressing the internal situation, not by clutching at legal straws.
No matter what the outcome is, it’s unlikely any result will come soon. The complex nature of the case will be inherently time consuming, even without the compensation that is being demanded.
The Premier League is also still in a legal battle with Manchester City after charging the serial-winners with 115 breaches of FFP rules. That battle could see a delay in the Everton case.
No matter what punishment is branded, or how much compensation is rewarded, there will be no winners, only losers. In a period of financial instability, it’s a stark reminder of the fragile finances of football, and how sinister and selfish the billionaire’s that own our clubs really are, no matter how many free beers and donuts they buy the fans.