Premier League reduces Everton penalty for breaking financial rules

Everton’s points deduction for a violation of the Premier League’s profitability and sustainability rules has been reduced from 10 to six points following an appeal, as confirmed by both the club and the Premier League on Monday.

In November, Everton faced an immediate deduction of points after breaching profitability and sustainability rules related to losses. An independent Appeal Board has now concluded that the sanction for Everton’s breach will be an immediate six-point deduction, according to a statement from the Premier League.

The initial 10-point deduction led to Everton dropping from 14th in the standings to the relegation zone with four points. The club appealed against the initial deduction, denouncing it as “wholly disproportionate and unjust.”

A club statement from Everton confirmed the reduction, stating, “Everton can confirm an Appeal Board has concluded that the points deduction imposed by an independent Premier League Commission in November be reduced from 10 points to six points, with immediate effect.”

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The appeal addressed nine grounds, all related to the sanction rather than the breach, with two of those grounds upheld by the Appeal Board. Everton acknowledged the breach of profitability and sustainability rules for the period ending with the 2021-22 season, with total losses amounting to £124.5 million, exceeding the permitted £105 million limit over a three-year period according to the Premier League’s Financial Fair Play regulations.

Following the initial deduction, Everton recorded four consecutive wins, climbing to 16th place. However, a subsequent run of nine league games without a victory dragged them back into the relegation battle. With the reduction, Everton now sits in 15th place with 25 points, maintaining a five-point cushion above the relegation zone.

The club stated that they are still considering the broader implications of the decision and will refrain from further comments at this time. Additionally, Everton faces another charge by the Premier League in January for a separate profitability and sustainability rules breach, along with Nottingham Forest. Both clubs will undergo an independent commission’s assessment to determine appropriate sanctions, which may include a further deduction for Everton. A second points penalty would heighten the risk of relegation and add uncertainty to Everton’s future, as the club engages in takeover talks with U.S. investment fund 777 Partners and plans a move to a new stadium ahead of the 2025-26 season.