Everton Drop Into Relegation Zone After Receiving Biggest Points Penalty In Premier League History
Everton have been hit with an immediate 10-point deduction for breaching the Premier League's profit and sustainability rules.
EPL clubs are permitted to make losses of up to £105 million over three years but Everton lost significantly more than this during the period ending in the 2021/22 season.
A Premier League statement explained on Friday: "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.
"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 £124.5m, as contended by the Premier League, which exceeded the threshold of £105m 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."
The Premier League has deducted 10 points from Everton after the club broke profit and sustainability rules
IMAGO/Every Second Media
Everton had been 14th in the Premier League table before Friday's points deduction. The Toffees have since dropped to 19th place.
The Goodison Park outfit still have a strong chance of avoiding relegation this season, as they are just two points below Luton in 17th place.
Furthermore, it is possible that the points deduction may be reduced upon appeal.
Prior to Everton's punishment, the biggest points deduction in Premier League history had been nine points, issued to Portsmouth in 2010 after the South Coast club went into administration - a form of bankruptcy protection.
Everton responded to Friday's points deduction by publishing a club statement.
It 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."
While Everton regard the punishment as harsh, others will view the timing of it as kind on the Merseyside club.
Had 10 points been deducted in either of the previous two seasons then it would have resulted in Everton being relegated.
That could still happen this season but Sean Dyche's team now have 26 games to ensure it does not.
