EVERTON reportedly face a further nine-point deduction if Burnley, Leicester and Leeds are successful with their £300million compensation claim.
The trio are understood to be preparing claims to sue Everton for £100m each after being relegated from the Premier League in recent seasons.
GettyEverton could enter administration if they are forced to compensate Leeds, Leicester and Burnley[/caption]
GettyLeeds suffered relegation last season[/caption]
GettyLeicester also went down with the three clubs claiming Everton should have been hit with their points deduction last season[/caption]
And if successful with their lawsuit the Toffees could have to cough up £300m in compensation, report the Daily Mail.
It is claimed Everton’s new owners 777Partners would be unable to pay up if hit with such a bill.
And that means the club would be placed into administration, leading to further nine-point deduction.
It comes after Everton were docked ten points for breaching Financial Fair Play rules.
Everton have been punished for breaching profit and sustainability rules after recording financial losses of £44.7million for the 2021-22 season – bringing their three-year total to £124.5m.
That exceeds the Premier League threshold, which permits a maximum loss of £105m across three years, by £19.5m.
It is believed Leeds, Leicester and Burnley contacted 777Partners before the ruling to state their intention to sue if they were found guilty.
Burnley suffered relegation in 2022 as Everton’s overspending helped them beat the Clarets to safety by four points.
While Leeds and Leicester, who were relegated from the Prem last season, claim Everton should have been docked points during the 2022/23 campaign, where they survived by two points.
The three clubs have 28 days to formally lodge their claim, and the Premier League expect a hearing to take place before the end of the season.
David Phillips KC ruled the trio had a case and said in a statement: “I am satisfied that the applicant clubs have potential claims for compensation.
“Those claims and their validity depend on whether the complaint is upheld.”
If hit with administration Everton could be forced to sell some big-name players, including Jordan Pickford and Dominic Calvert-Lewin.
It would also mean they are likely to suffer relegation, although a supercomputer tipped them to stay up despite their ten-point deduction.
Chelsea and Manchester City could also face relegation if they are hit with similar sanctions for FFP breaches – City were hit with 115 charges earlier this year.