A Premier League commission and appeal board has ruled that Everton should pay about a third of the total amount, £1.7million – with the Premier League covering the remaining £3.2million – for legal costs of £4.9million in the PSR case that resulted in the Club being deducted 10 points, which was reduced to 6 points on appeal.
This was a victory of sorts for the club after Everton had challenged the Premier League’s costs, with their lawyer Celia Rooney telling the appeal that the figures submitted were “frankly eye-watering”. The full findings of the costs appeal are revealed in a judgment made on July 5.
The appeal board’s judgment shows that the Premier League paid its lawyers Linklaters much higher fees than Everton paid their law firm Pinsent Masons for similar work. Everton claimed the costs sought as recoverable by the Premier League were “both unexplained and inexplicable” and “grossly excessive”.
The club stated that the cost per witness statement was more than five times higher for the league (£148,668 for the Premier League, compared with £26,637 for the club), and cost per document disclosed was 19 times higher (£9,773 compared with £515).
The hourly rate charged by the Premier League’s lawyers of £940 was “nearly double” the then guideline rate of £512 and the £550 charged by Pinsent Masons, Everton argued. The appeal panel ruled that costs of £1.7million were reasonable for Everton to pay, rather than the full £4.9million.
The judgment states: “In reaching that conclusion, we emphasise that we make no criticism of the PL or its lawyers” and points out that in High Court commercial litigation, it is usual for both parties to spend substantially more on their lawyers and experts than can be recovered from the other side in costs.
“Against that background, £1.7million by way of the costs award in this case is a significant sum in respect of about eight months of legal work,” the judgment says. “The sum is in line with what would be regarded as reasonable and proportionate by way of contribution to the PL’s costs in High Court proceedings with the characteristics of this case.”
The appeal board also directed the Premier League to pay Everton’s £182,500 costs of the successful appeal and £28,804 for the costs hearing.