Everton FC Scores Victory Over Premier League in Legal Costs Dispute
In a significant development, Everton Football Club has emerged victorious in a legal costs dispute against the Premier League. The club will only be required to pay a third of the £4.9 million in legal costs sought by the Premier League, following a ruling by an appeal board.
The dispute relates to the first Profit and Sustainability Rules (PSR) case brought against Everton last year, in which the club was accused of breaching the PSR limits. The Premier League initially imposed a ten-point deduction on the club, which was later reduced to six points on appeal. The £4.9 million in legal costs sought by the Premier League pertained to the 2021/22 financial year and did not include the charge for the 2022/23 financial year, for which the club was also found to be in breach of PSR and received an additional two-point deduction.
Everton’s general counsel, Celia Rooney, described the Premier League’s requested legal costs as “frankly eye-watering.” The appeal board’s verdict highlighted that the chargeable hours for the Everton case were equivalent to almost five months’ worth of 24-hour days. The Premier League spent £26,638 per document, compared to £515 on Everton’s side. Additionally, the Premier League paid an hourly rate of £940 to partners from its external legal firm Linklaters, almost double the £550 paid by Everton to its equivalent firm, Pinsent Masons.
The Premier League’s general counsel, Jason Pobjoy, attributed the increased legal costs to Everton’s “unreasonable conduct in the proceedings.” However, the appeal board emphasized that it made no criticism of the Premier League or its lawyers. The board directed the Premier League to pay Everton’s £182,500 costs of the successful appeal and £28,804 for the costs hearing.
This development comes as the Premier League faces another high-profile case against Manchester City, set to start next fortnight, involving 115 charges brought against the club for alleged breaches of financial rules. The verdict in the Everton case may set a precedent for future cases regarding legal costs.
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