The American investment firm has been notified that legal action will be taken against Everton if the club is found guilty of breaching spending rules.
The Premier League had charged Everton in March after publishing updated accounts for last season, revealing a staggering £313.5m loss over the preceding three years.
The profit and sustainability rules prohibit clubs from incurring losses exceeding £105m over a three-year period – although expenditures related to infrastructure are deducted from the calculations.
Burnley, Leeds United and Leicester City have jointly submitted a letter to 777, inquiring if the investment firm is aware of their plans to sue Everton, pending the outcome of a Premier League independent tribunal on October 25.
The three clubs have expressed discontent over the handling of Everton’s charges last season, suggesting the delay may have facilitated Everton’s relegation escape by avoiding a points deduction.
Formally notifying the Premier League of their intention to sue, the three clubs are prepared to seek £100m each in compensation based on the loss of top-flight income for a single season.
Burnley faced relegation from the Premier League the previous season, during which Everton’s spending also raised concerns.
The Toffees reported three-year cumulative losses of £372m but avoided charges due to allowances granted in response to Covid-related financial challenges.
Everton’s proposed takeover was already hanging in the balance due to the club’s mounting debt and cashflow difficulties, a situation further complicated by owner Farhad Moshiri’s decision to cease his financial support.
Moshiri, who spent over £750m during his tumultuous seven-year tenure, has firmly stated that he will not inject additional funding into the club.
777 had previously loaned Everton approximately £20m to ease financial issues, but the club remains in a precarious financial predicament – one that would be further exacerbated by lengthy legal proceedings.
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