Everton: Leeds and Burnley drop threat of legal action about club's finances
- Published
Leeds escaped relegation with a last-day win over Brentford but Burnley will compete in the Championship next season
Leeds and Burnley have dropped the threat of legal action against Everton and the Premier League over the Toffees' finances.
Everton have posted £372m losses over three years, which is above the Premier League allowance of £105m.
That figure also included £170m losses attributed to Covid-19, which can be written off, although the scale of those losses also caused surprise.
But Everton have always indicated they were confident they had complied with financial rules, and have been working with the Premier League.
Both Leeds and Burnley wanted the club's accounts to be independently investigated, but after meeting with the Premier League they were advised that they complied with profit and sustainability rules.
The two clubs had written to the Premier League in May, with their top-flight status under threat. Leeds remained in the Premier League thanks to a last-day win over Brentford but Burnley were relegated after losing on the same day to Newcastle.
As well as adjusting for Covid-related losses, clubs are allowed to deduct spending on their academy and women's team, and in Everton's case, on their new stadium - which is under construction and set to open in 2024 at a cost of more than £500m.
The club's £170m adjusted loss over three years up until the 2020-21 season is set to get worse once it includes the recently completed 2021-22 season.
The completion of the £60m deal to sell Brazil forward Richarlison to Tottenham on 30 June means that income can now be included in last season's accounts, and therefore help balance the books for the next rolling three-year period.
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