Iwobi, Alli may go down with Everton if Leeds and Burnley take legal action 

Super Eagles midfielder Alex Iwobi and compatriot Dele Alli may go down with Everton may if Leeds United and Burnley pursue their threat to bring a claim for substantial damages against the Premier League and Everton believing the Merseyside club have seriously breached financial rules which may lead to substantial point deductions.

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 £371.8 million over the last three years.

The Premier League’s profit and financial sustainability rules allow clubs to lose a maximum £105 million over a three-year period or face sanctions which include points deductions for serious breaches. Leeds and Burnley want an independent commission to decide if Everton should face such sanctions.

Any action would look for compensation for relegation, which would cost the club that goes down around £200million.

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.

“If they want to take legal action then they can do so by all means.”

Leeds and Burnley have been in a relegation fight with Everton, who secured their Premier League survival on Thursday night. The letter was sent before last weekend’s round of matches however and the two clubs believe the majority of other teams in the top flight are sympathetic.

The pair are understood to have written they are concerned that while Everton may have been in serious breach of the financial rules they have continued to have a substantial advantage over other clubs in the Premier League who have been compliant. They are also understood to have written expressing concerns that the league has not acted appropriately or quick enough.

Their action is potentially the most serious legal challenge to the Premier League and a member club since West Ham United paid Sheffield United £20 million compensation after being fined — rather than having a point deduction — in 2007 for breaching third-party rules in signing Carlos Tevez.

Leeds and Burnley have engaged the services of a heavyweight law firm and a QC with specialist experience in sport. They believe this will be an important test case for the Premier League and want an independent commission to be set up within six weeks to deliver a judgment well before the start of next season, believing all the necessary information will be immediately availabl