Oh dear...

Leeds United and Burnley have threatened to bring a claim for substantial damages against the Premier League and Everton believing the Merseyside club have seriously breached financial rules.

The two clubs sent a letter last week warning they reserve the right to take legal action against the Premier League and Everton, and demanding details of what – if any – action or investigation the league has started after Everton recorded losses totalling £371.8million over the last three years.

The Premier League’s profit and financial sustainability rules allow clubs to lose a maximum £105million over a three-year period or face sanctions which include points deductions for serious breaches.

Losses caused by the Covid pandemic can be written off but Leeds and Burnley have raised concerns that media reports and Companies House filings show Everton’s Covid-related losses are more than three times that of clubs of a similar size.

The Premier League declined to comment. An Everton spokesman told The Times: “We have worked so closely with the Premier League to make sure we are compliant we are comfortable we have complied with the rules.

“External auditors have told us what we can and cannot claim against the pandemic.