Can you not read? Watford recognise that they have forfeited any right to compensation.
"At the request of the Premier League we entered into mediation with Everton in a process that involved club officials and their respective legal teams, with no conclusion being reached.
Therefore the disciplinary process continues. In pursuing its disciplinary claim, the club has known from the outset it forfeited any right to compensation as a consequence of not following a proposed arbitration process.
We believe this situation is not about a compensation figure but the principle of making a stand when the actions of one Premier League club completely undermine and cause intrinsic damage to a fellow member club".
They are after punishing Everton. And I would imagine that to pursue this they must have some pretty damning evidence.