A Premier League club have been ordered to pay the Clarets the significant sum.
Burnley are heading into the summer with plenty of uncertainty, but it seems they are about to receive a healthy cash injection.
The Clarets were relegated from the Premier League after finishing in 19th place and are still without a manager, as Mike Jackson took temporary charge at the end of the campaign.
With the transfer window set to open in days, supporters will be hoping for an imminent appointment, so the club can press on with summer recruitment.
While fans wait for updates on the managerial front, there has been some eye-catching news that will go down well with everyone associated with Burnley.
Everton to pay Burnley eight figures over PSR breaches
In April 2022, Burnley were relegated from the Premier League after losing 1-0 to Manchester City, and went on to finish 18th and three points adrift of safety.
Two places and four points above them were Evertonwho, after a turbulent season on and off the pitch, were steered clear of safety thanks to Frank Lampard.
Four years later, the Clarets have won their legal dispute with the Toffees after the Lancashire club sued the Merseyside outfit for breaching Premier League rules, according to The Lawyer.
The publication reports that Everton have been ordered to pay Burnley compensation and interest of nearly £40million, although the Toffees intend to appeal the decision.
The ruling relates to a 10-point deduction that the Merseyside club received in late 2023 for breaches of Profit and Sustainability rules (PSR) in the 2021/22 season.
This was eventually reduced to six points on appeal in early 2024, and with four points separating the two clubs at the end of the 21/22 campaign, the Clarets felt their relegation was unjust as the Toffees should have gone down in their place.
What impact could the ruling have on English football?
The ruling for Everton to pay Burnley is based on the legal principle of ‘loss of chance’ as the latter argued they were denied the opportunity to remain in the top flight.
There have been several deductions of late, with West Brom, Leicester City and Sheffield Wednesday among the clubs to be hit, while the world is waiting on the formalities of Man City’s 115-charge case brought against them.
What the ruling means is that not only could clubs face sporting sanctions, such as points deductions, but they may also have to pay significant compensation to clubs affected.
The key here is that when a club has missed out on a ‘loss of chance’ as Burnley did in 2022, they may have a case.
For the Clarets, they not only suffered relegation, but they also incurred a substantial loss of earnings in the process, which is why they are due to receive £40m.
Moving forward, clubs will have to tread extra carefully, especially while navigating the new Squad Cost Ratio (SCR) rules, which come into effect from the 2026/27 season.
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