Everton's Friedkin Group Owners Inject £38m Amid Reported Burnley Compensation Obligation
Key Takeaways
- •The Friedkin Group injected over £38m into Everton by allotting 221,965 shares at £175 each to cover compensation owed to Burnley.
- •The Premier League Independent Disciplinary Commission awarded Burnley £26m plus nearly £10m in interest after finding that Everton's PSR breach conferred an unfair sporting advantage during the 2021-22 season.
- •The ruling is among the first cases where one Premier League club secured direct financial compensation from another for a PSR violation, rather than relying solely on sporting sanctions.
- •Everton avoided relegation by four points in 2021-22 while Burnley were relegated, and Everton had already received a six-point deduction in 2023 under previous owner Farhad Moshiri.
- •Everton appealed the Commission's decision, asserting that the ruling was fundamentally flawed and that a sporting sanction had already been applied.
Everton's owners, The Friedkin Group, have injected £38m into the club, reportedly to cover compensation owed to Burnley following a landmark Premier League ruling earlier this year.
The obligation stems from a decision by the Premier League Independent Disciplinary Commission, which found that Everton owed Burnley close to £40m. The case is notable as one of the first instances of a Premier League club securing direct financial compensation from another over a PSR breach, rather than relying solely on league-imposed sporting sanctions.
Burnley had successfully argued that Everton's breach of Profitability and Sustainability Rules (PSR) during the 2021-22 season conferred an unfair sporting advantage. PSR permits clubs to record losses of up to £105m over a rolling three-year period.
During that campaign, Everton avoided relegation by four points, finishing 16th. Burnley, along with Watford and Norwich City, were relegated to the Championship. Everton were subsequently handed a six-point deduction in 2023 under former owner Farhad Moshiri.
The Commission awarded Burnley £26m in compensation, with additional interest payments accumulating to just under £10m.
A share issue filing on Companies House revealed that Everton allotted 221,965 shares at £175 each, totalling more than £38m.
Friedkin Group's Investment Context
The Friedkin Group, which also owns Italian Serie A club AS Roma, completed its majority takeover of Everton in 2024 in a deal valuing the club at £500m. The club's valuation has since risen above £600m, bolstered by its new stadium at Bramley-Moore Dock — known as the Hill Dickinson — situated on the banks of the River Mersey and widely regarded as one of the premier venues in English sport.
The stadium is scheduled to host matches during the 2028 European Championships and has already staged both rugby union and rugby league fixtures since opening.
The compensation payment adds to the financial legacy inherited by The Friedkin Group from the Moshiri era, during which Everton posted significant losses and faced multiple PSR proceedings.
At the time of the Commission's judgment, Everton stated it had "appealed the decision and is clear in its belief the ruling is fundamentally flawed in both law and fact."
"The club does not recognise the findings of the panel in determining Burnley's relegation from the Premier League in May 2022 was caused by a sporting advantage gained by Everton due to a breach of Profit and Sustainability Rules," the club added. "For which a substantive sporting sanction has already been received."
Everton have been approached for further comment.