Everton have been hit with the most significant punishment in Premier League history, as they receive an immediate 10-point deduction for breaching the league’s profit and sustainability rules.
This unprecedented move drops Everton to 19th place in the table with a new total of four points.
The club, expressing disbelief and disappointment, has promptly announced its intention to appeal against the ruling, labelling it as “wholly disproportionate and unjust.”:
The Premier League initiated the investigation into Everton’s financial affairs, referring the club to an independent commission in March. The specifics of the alleged breach were not disclosed at the time.
Everton, posting financial losses for the fifth consecutive year in March, reported a deficit of £44.7 million for the 2021-22 season.
Premier League clubs are allowed to incur losses up to £105 million over a three-year period, as stipulated by the Profit and Sustainability Rules (PSR).
In admitting to breaching these regulations for the period ending 2021-22, Everton acknowledged their financial struggles.
Following a five-day hearing in October, the independent commission sided with the Premier League, determining that Everton’s losses during the specified period exceeded the allowable limit, amounting to £124.5 million. This decision led to the imposition of the record 10-point deduction.
In response to the ruling, Everton released a statement expressing their disagreement with the commission’s findings.
The club asserted that it does not recognize the claim that it failed to act in good faith, and it was surprised by the severity of the sanctions imposed. Everton argued that the punishment does not fairly reflect the evidence presented during the proceedings.
Despite the setback, Everton remain resilient, declaring its intention to appeal the decision. The club vows to challenge the perceived harshness of the sanction and hopes for a fair reconsideration of the case.
Additionally, Everton stated that it will closely monitor other cases involving the Premier League’s profit and sustainability rules, suggesting a keen interest in how similar situations are handled.
The timing of this points deduction adds to the uncertainty surrounding Everton, especially in light of the pending ownership change.
In September, owner Farhad Moshiri agreed to sell his 94% stake in the club to American investment fund 777 Partners. The takeover, already in regulatory processes, was expected to be completed next month before this ruling introduced a new layer of complexity to the transition.