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According to the Guardian, Everton Football Club has been penalized with a significant deduction of 10 points, marking the harshest punishment ever imposed on a team in the Premier League, due to their violation of financial fair play regulations.
As a result of this ruling, Everton now finds themselves in the second-to-last position in the Premier League standings, with a mere two points separating them from the safety zone.
In response to the decision reached by an independent commission following an investigation, Everton expressed their profound shock and disappointment and have announced their intention to appeal. The club aims to conclude the appeal process before the conclusion of the current season. Leeds United, Leicester City, and Burnley, all of whom were relegated in the past two seasons, while Everton narrowly avoided the same fate, have taken action by writing to Everton’s prospective new owners, 777 Partners. In these letters, they have warned of their intention to pursue legal action and seek damages if Everton is found guilty.
Additionally, Southampton, another club that suffered relegation, has also threatened to take legal measures, potentially resulting in collective claims amounting to tens of millions of pounds. It is worth noting that the purchase agreement for Everton includes provisions that would lead to a reduction in the price for 777 Partners if the charges against the club are upheld. Everton’s current position in the Premier League, with the team occupying the 19th spot, just above Burnley, based on their points and goal difference.
The investigation into Everton’s financial records for the 2021-22 season was initiated following an audit of Premier League clubs. Burnley and Leeds had previously raised concerns with the Premier League regarding Everton’s compliance with the regulations, citing losses of £371.8m over the past three years.
Everton has consistently denied any wrongdoing. According to the Premier League regulations, clubs are permitted to incur a maximum loss of £105m over a three-year period. Those found to have breached the profitability and sustainability rules (PSRs) can face fines or point deductions. In an official statement, the Premier League confirmed that, following a five-day hearing, the commission determined that Everton’s PSR calculation for the relevant period resulted in a loss of £124.5m, surpassing the permitted threshold of £105m outlined in the PSRs.
Consequently, the commission concluded that a sporting sanction in the form of a 10-point deduction should be imposed, with immediate effect.