Everton may have to pay financial settlement after club files claim

Everton received a significant boost earlier this week when their penalty for violating the Premier League‘s Profitability and Sustainability rules was reduced. English soccer officials previously deducted the Toffees 10 points for breaking the law. Nevertheless, the Merseyside club eventually appealed the decision, and the Premier League reduced the penalty to six points.

Due to the previous penalty, the historic English side was hovering just above the relegation zone. The revision of the punishment, however, has given Everton a bit of room in the standings. The Toffees now sit 15th in the table, five points above 18th-placed Luton Town.

Although the points change was certainly good news for the club, there are still a series of upcoming hurdles to jump. Despite picking up a six-point deduction in the current campaign, Everton faces yet another charge for a similar issue. As a result, the Toffees could be set to face a second points deduction before the end of the current campaign.

Unnamed club(s) planning lawsuit against Everton that may require financial settlement

Along with their points problems, Everton also has a potential lawsuit hanging overhead as well. Several clubs dropped to the Championship in recent seasons that have previously threatened to sue the Merseyside team. This list of clubs includes Burnley, Leeds, Leicester, Nottingham Forest, and Southampton. The quintet claims that Everton avoided relegation by abusing the financial rules.

While the possible lawsuits have been up in the air for nearly a year, recent reports suggest at least one of the aforementioned teams are directly planning legal action. The lawsuit did not name the particular club(s), but both Burnley and Leicester seem to have the best case against Everton.

The Clarets suffered relegation from the Premier League following the 2021/22 season. While two other clubs fell from the top flight, Burnley only narrowly finished behind Everton that season. Similarly, the Foxes suffered relegation last season after ending up just two points from the Toffees.

Determining the exact compensation the relegated clubs may ask for could be tough to determine. However, Championship teams earn a base of $63 million less than Premier League sides in broadcasting revenue. These clubs would also reference losing sponsorships and selling star players due to relegation.

777’s pending takeover of the club finally nearing the finish line

The proposed ownership takeover from 777 Partners also looms as well. The American investment group previously agreed to purchase a majority share of Everton way back in September. Nevertheless, the group’s precarious financial situation has slowed down the takeover in recent months.

The Times, however, is now reporting that the Premier League will soon meet with 777 to have face-to-face talks. This move is a potential final step in the takeover process, assuming the deal eventually goes through.

777 Partners have loaned the Merseyside club around $240 million since the agreement with current ownership. There have been suggestions that this temporary funding may halt in March if the pending purchase continues to drag. This will undoubtedly be a point of discussion between the group and the Premier League.

Among all of the current controversies at the club, Everton faces a crucial next few months. The best-case scenario for the team would be to avoid relegation and see ownership change hands. Nevertheless, things could quickly go in the wrong direction and threaten the club’s standing as a formidable English top-flight side.

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