the times | Tuesday May 24 2022 59
Sport
Burnley and Leeds United have
demanded that the Premier League
hands over copies of any evidence it has
collected about Everton’s finances and
any provisional ruling it may have
made about possible rule breaches.
The clubs have argued that they are
entitled to have access to the
documents as they are shareholders in
the league.
The Times revealed on Friday that
Leeds and Burnley have threatened to
bring a legal action for substantial
damages against the Premier League
and Everton, believing the Merseyside
club have seriously breached financial
rules. They have demanded that an
independent commission is set up to
investigate Everton, who only secured
survival in their penultimate game of
the season — with the clubs reserving
the right to take legal action.
Everton insist they have worked
closely with the Premier League to
ensure they comply with its profit and
sustainability rules despite racking up
huge losses of £371.8 million over the
past three years.
Football finance experts believe that
Everton do have a case to answer even
after they attributed large amounts of
the losses to the effects of the Covid
pandemic, especially given the sum
that Everton are claiming for reduced
income from player sales due to the
depressed transfer market.
It is not known if the Premier League
has even agreed a provisional
means that they are likely to have to sell
off their star players to stay afloat.
The club’s position partly explains
their anger over Everton racking up
huge losses without, so far at least,
incurring sanctions.
The Premier League’s decision to
allow the use of loans to fund Burnley’s
takeover was controversial at the time
because of the risk involved. There is
hugely increased financial pressure in
servicing and paying off the debt once
the guaranteed £100 million a year
from Premier League TV money stops.
Accounts published this month show
that relegation triggers the immediate
repayment of “a significant proportion”
of a £65 million loan from the US
investment firm MSD Holdings.
Burnley will receive £42 million in the
first year from parachute paymentsChelsea 129
113
111
106
106
94
94
93
91
88
81
81
79
75
68
67
67
63
62
61Liverpool
Leicester
Man City
Man Utd
Everton
Watford
Southampton
Norwich
Brighton
Crystal Palace
Newcastle
Wolves
Aston Villa
Leeds
Brentford
Tottenham
Arsenal
Burnley
West HamStarting XI ChangesThe Premier League season in six graphics
Chelsea's stockpiling of elite players —
and also the physical demands of playing
63 matches across all competitions this
season — led to Thomas Tuchel making
more changes to his Premier League
starting teams than any other manager.
At the other end of this graphic, David
Moyes made the fewest changes,
indicating that West Ham benefited from
continuity in selectionTinkering TuchelPossibly encouraged by the return of crowds after a Covid-enforced
season-and-a-half of largely empty grounds, there were more shots in
the Premier League than in any other of the past five seasons. The
season before, almost entirely without fans, had seen shooting drop to
its lowest levels in the last five yearsShooting back in fashion2017/18 18/19 19/20 20/21 21/229,7479,1949,3989,6339,298Man City
Liverpool
Chelsea
Tottenham
Arsenal
Crystal Palace
Brighton
Man Utd
West Ham
Brentford
Aston Villa
Southampton
Everton
Newcastle
Leicester
Burnley
Wolves
Leeds
Watford
Norwich99
94
76
69
61
50
42
57
60
48
52
43
43
44
62
34
38
42
34
2326
26
33
40
48
46
44
57
51
56
54
67
66
62
59
53
43
79
77
8472.5
59
32.3
20.5
16.6
7.7
3.6
1.1
-0.1
-2.6
-5.9
-12.8
-13.6
-18.4
-18.5
-19.4
-22.4
-23.1
-28.8
-47.7Goals expected Expected against +/- GF GATrent Alexander-Arnold not only created more chances than any other player, he is the
only person in the top ten who does not play in either midfield or attack.
Alexander-Arnold's ability to make chances from right back explains why Jürgen Klopp
describes him as the best in the world in that position, even if Gareth Southgate rarely
sees him as such for England.Trent’s special talentTrent Alexander-Arnold (Liverpool) 90Chances createdBruno Fernandes (Man Utd) 89
Kevin De Bruyne (Man City) 87
Martin Odegaard (Arsenal) 77
Son Heung-min (Tottenham) 72
James Ward-Prowse (Southampton) 71
Bukayo Saka (Arsenal) 68
Raphinha (Leeds) 65
Mo Salah (Liverpool) 63
Pascal Gross (Brighton) 6098.7 26.2
37.9
39.6
46.7
52.4
46.8
50.6
60.4
59.3
54.9
55
63.9
61.9
63.2
70.8
65
64.9
74 .7
73.4
83.596.9
71.9
67.2
69
54.5
54.3
61.5
59.2
52.3
49.1
51.2
48.3
44.9
52.3
45.6
42.5
51.6
44.6
35.8'Expected goals' is a measure of the quality of chances that a team creates, but it does
not reflect how good a team is at taking those chances, or preventing opponents taking
theirs. This chart shows the difference between a team's 'expected goals' for and
against, and actual goals for and against. It suggests Wolves performed well
above their 'expected goal difference’ — an indication that their goalkeeper,
José Sá, and his defenders were superb at stopping opponents
converting chances. It also suggests Brighton and Crystal Palace were
excellent at making chances — but not so good at taking themn six graphics Wolves most effective at the back while Brighton struggle in front of goal
by the return of crowds after a Covid-enforced
argely empty grounds, there were more shots in
han in any other of the past five seasons. The
t entirely without fans, had seen shooting drop to
e last five yearsfashion8/ 19 19/ 20 20/21 21/ 229,7 4779,194, 99,3 933398983333MMan City
Liverpool
Chelsea
To t t e nham
Arsenal
Crystal Pala
Brighton
Man Utd
West Ham
Brentford
Aston Villa
Southamp
Everton
Newcastle
Leicester
Burnley
Wolves
Leeds
Watford
Norwichplayer, he is the
k.
hy Jürgen Klopp
outhgate rarely90
89
87'Expected goals' is a
not reflect how good
theirs. Thisch
against,
above
José
con
excWolves most effeNeither of the Premier League's top two made it into the top four average attendances
Average Premier League attendance this season
Man United
Arsenal
West Ham
Tottenham
Liverpool
Man City
Newcastle
Aston Villa
Everton*
Chelsea
Leeds
Leicester
Brighton
Wolves
Southampton
Norwich
C Palace
Watford
Burnley
Brentford73,150
59,776
58,367
56,523
53,027
52,774
51,487
41,681
38,910
37,812
36,308
31,941
30,943
30,765
29,939
26,810
24,282
20,598
19,353
16,912 *One attendance not reported Source: OptaCity and Liverpool (fans) don't make top fourTrent
Alexander-Arnold
(Liverpool)12
Only Mo Salah (13)
provided more
assists in the
2021/22 season than
Alexander-Arnold729
Liverpool took the
most shots in the
2021/22 season. City
took 713, and
Chelsea 592Everton have financial ‘case to answer’
settlement with Everton for any
possible breaches as it has declined to
comment.
The football finance blogger Swiss
Ramble has calculated that Everton
have breached the £105 million
permitted losses by £39 million, and
that the club is claiming their losses
would have been £88 million lower if
the transfer market had not been
depressed — the same as the club’s
record profit from trading players in- “It does look like Everton have a
case to answer,” he said.
Everton have said they are
comfortable they are compliant with
the rules and have worked “closely”
with the Premier League to ensure they
are. Leeds and Burnley have also asked
specifically that Everton do not delete
any data or documents relating to
transfers, sponsorship, stadium and
commercial deals.
Everton finished in 16th, a place and
a point ahead of Leeds. Burnley were a
further three points behind and have
been relegated to the Sky Bet
Championship. Unless the threatened
legal action against the Premier League
and Everton returns some dividends,
the immediate future looks grim for the
Lancashire club, with relegation
triggering the need to repay a
£65 million loan taken out to fund last
year’s takeover.
The leveraged buyout by ALK
Capital in January 2021 — where the
£170 million purchase of the club was
majority-funded by loans — has left the
club in a position where relegation
after being relegated from the top flight,
which would be swallowed up by that.
Alan Pace’s ALK Capital also borrowed
£37 million from the club’s own bank
accounts to help finance the takeover.
There was £50 million in cash in the
club’s accounts in June 2021, though it is
not clear how much there is now. But
given that Burnley’s match-day income
hovers around £5.5 million, the club’s
£85 million annual wage bill is going to
have to be slashed.
The players’ contracts have clauses
which mean their salaries will be
reduced in the Sky Bet Championship,
but the Burnley FC Holdings Ltd
annual accounts have spelled out the
likely direction the club will now take,
meaning a firesale of players such as the
England goalkeeper Nick Pope, the
midfielder Dwight McNeil and the
forward Maxwel Cornet. Nine players
will be out of contract and able to leave
for free this summer, including the
England centre back James Tarkowski.
The accounts state: “In the event of
relegation, the group will incur a
significant reduction in turnover
and... will be required to take steps to
reduce costs and borrowings to a level
which are more sustainable for a
Championship club. In the event of
relegation, the directors are satisfied
that the group will continue to have the
support of its lenders. In this scenario
the group has forecast a significant
reduction in wages and salaries which
will be largely achieved by contractual
means existing in player contracts.”
The accounts add that there will be “anet inflow of cash from player trading”
and that if the finances are still not
healthy “the directors are satisfied that
further cash can be generated,
including by further player trading if
this was necessary”.
That all begs the question of whether
Burnley can mount an immediate
challenge for promotion from the
Championship. They went straight
back up as champions in 2015-16, after
their previous relegation from the
Premier League, but they were not in
such financial straits then. There are
understandable concerns that
measures are taken so the club does not
go down the path of Derby County, who
went into administration last season
and were relegated to League One.
Kieran Maguire, a football finance
author, said: “Leveraged buyouts are
high-reward, high-risk methods of
takeovers. Burnley earned over 86 per
cent of their revenues during their time
in the Premier League and this will fall
sharply in 2022-23. If the club has to
repay all or almost all of the £65 million
debt following relegation, it leaves the
club with little leeway to meet costs. If
there is a sale of assets such as Pope and
McNeil then, combined with many
players [being] out of contract this
summer, there will be a substantial
rebuilding exercise needed on a modest
budget.
“They punched above their weight
from a financial perspective before the
takeover but the new ownership
structure will put significant demands
on cash flow over the near future.”Martyn Ziegler Chief Sports Reporter
Burnley are likely to have to sell Pope