Explained: Why Leicester and Burnley could receive £300m compensation from Everton following 10-point deduction

The Premier League handed out the sanction to Everton on Friday, after the Toffees posted financial losses of almost £372m ($462m) over three years, more than £250m ($311m) over the threshold laid out in the league's rules. They have subsequently dropped into the relegation zone and have just four points from 12 games. Everton plan to appeal the decision.

Per Ben Jacobs of CBS Sports, a group of clubs must decide if they want to seek compensation from Everton, having brought a collective action against the Toffees. They are Leicester, Burnley, Southampton, Leeds, and Nottingham Forest.

In 2021/22 Burnley finished in the final relegation spot, while Leicester did so in 2022/23. Everton survived, and the pair are deemed to have a "potential claim", per a ruling in May. They could demand as much as £300m, but the Premier League will have to seek that action.

Everton now face a relegation battle due to the points deduction and will hope their appeal is successful. No club has ever been handed such a hefty penalty while playing in England's top division.

The international break has lightened the pressure on Everton but they will return to action on November 26 against Manchester United at Goodison Park. Sean Dyche will have to raise his players for such a difficult encounter, especially given their updated league standing.