Everton have been handed a 10-point deduction this season for breaching the Premier League’s profit and sustainability rules.
The club was referred to an independent commission in March for alleged breaches relating to the 2021-22 season and a hearing took place last month.
Everton could have been fined or given a transfer embargo, but the Premier League have now confirmed the punishment of a points deduction, which will see Sean Dyche’s side drop to 19th in the table, only above bottom-placed Burnley on goal difference.
A statement from the Premier League read: “An independent Commission has imposed an immediate deduction of 10 points on Everton FC for a breach of the Premier League’s Profitability and Sustainability Rules (PSRs).
“The Premier League issued a complaint against the club and referred the case to an independent commission earlier this year. During the proceedings, the club admitted it was in breach of the PSRs for the period ending Season 2021/22 but the extent of the breach remained in dispute.
“Following a five-day hearing last month, the commission determined that Everton FC’s PSR calculation for the relevant period resulted in a loss of £124.5million, as contended by the Premier League, which exceeded the threshold of £105million permitted under the PSRs. The commission concluded that a sporting sanction in the form of a 10-point deduction should be imposed. That sanction has immediate effect.”
Everton, who had previously said they would “robustly defend” their position, are planning to appeal against the sanction calling it “wholly disproportionate and unjust”.
Premier League table with Everton’s 10-point deduction
| POSITION | TEAM | GAMES PLAYED | W | D | L | GD | POINTS |
|---|---|---|---|---|---|---|---|
|
1 |
12 |
9 |
1 |
2 |
20 |
28 |
|
|
2 |
12 |
8 |
3 |
1 |
17 |
27 |
|
|
3 |
12 |
8 |
3 |
1 |
16 |
27 |
|
|
4 |
12 |
8 |
2 |
2 |
9 |
26 |
|
|
5 |
12 |
8 |
1 |
3 |
12 |
25 |
|
|
6 |
12 |
7 |
0 |
5 |
-3 |
21 |
|
|
7 |
12 |
6 |
2 |
4 |
14 |
20 |
|
|
8 |
12 |
5 |
4 |
3 |
4 |
19 |
|
|
9 |
12 |
5 |
2 |
5 |
-1 |
17 |
|
|
10 |
12 |
4 |
4 |
4 |
5 |
16 |
|
|
11 |
12 |
4 |
4 |
4 |
2 |
16 |
|
|
12 |
12 |
4 |
3 |
5 |
-4 |
15 |
|
|
13 |
12 |
4 |
3 |
5 |
-4 |
15 |
|
|
14 |
12 |
3 |
4 |
5 |
-4 |
13 |
|
|
15 |
12 |
3 |
3 |
6 |
-10 |
12 |
|
|
16 |
12 |
2 |
3 |
7 |
-16 |
9 |
|
|
17 |
12 |
1 |
3 |
8 |
-12 |
6 |
|
|
18 |
12 |
1 |
2 |
9 |
-21 |
5 |
|
|
19 |
12 |
4 |
2 |
6 |
-3 |
4* |
|
|
20 |
12 |
1 |
1 |
10 |
-21 |
4 |
An Everton statement read: “Everton Football Club is both shocked and disappointed by the ruling of the Premier League’s commission.
“The Club believes that the commission has imposed a wholly disproportionate and unjust sporting sanction. The club has already communicated its intention to appeal the decision to the Premier League. The appeal process will now commence and the club’s case will be heard by an appeal board appointed pursuant to the Premier League’s rules in due course.
“Everton maintains that it has been open and transparent in the information it has provided to the Premier League and that it has always respected the integrity of the process. The club does not recognise the finding that it failed to act with the utmost good faith and it does not understand this to have been an allegation made by the Premier League during the course of proceedings. Both the harshness and severity of the sanction imposed by the Commission are neither a fair nor a reasonable reflection of the evidence submitted.
“The club will also monitor with great interest the decisions made in any other cases concerning the Premier League’s profit and sustainability rules. Everton cannot comment on this matter any further until the appeal process has concluded.”
Premier League rules dictate clubs are allowed to lose a maximum of £105million ($128.4m) over three years, but Everton recorded losses of £370million between 2018 and 2021.
The club said in a statement in March that they were “entirely confident” they were compliant with all financial rules and regulations.
Everton’s hearing is only the second time action like this has been taken, after Manchester City were hit with more than 100 financial fair play charges last season.
The outcome in City’s case has not yet been communicated, with The Athletic reporting that a verdict — which would be subject to appeal — would likely take considerable time to be reached.
There have been several precedents in the English Football League, but a punishment relating to breaches of profit and sustainability rules in the Premier League is unprecedented.
Why were Everton referred to the commission in the first place?
Farhad Moshiri’s arrival in 2016 was supposed to be a game-changer for Everton and the Anglo-Iranian was certainly a generous owner at first.
The first permanent manager under his reign as a majority investor, Ronald Koeman, spent around £145million on players in his first summer in charge, and Moshiri extended a similar level of support to the subsequent three managers before Rafa Benitez and Frank Lampard inherited tighter budgets.
That excess included inflated sums spent on underperforming players with too few sold at a profit, leaving the club vulnerable to the rules of FFP.
Staying within their limits became a key preoccupation for Everton over the last four years. Had it not been for the Covid-19 pandemic and the subsequent deductions allowed from losses, they would have earlier been in deep trouble.
They embarked on a series of cost-cutting measures, including player sales, but March’s developments suggested Everton may have been unable to claw back enough.
In March 2022, the club posted a loss of £120.9million in their last annual accounts, which prompted greater scrutiny, along with anger from fellow strugglers Leeds and Burnley.
A joint letter signed off by Leeds chief executive Angus Kinnear and Burnley chairman Alan Pace is thought to have prompted the Premier League investigation.
(Photo: Getty Images)
