Everton have been deducted two points for another breach of the Premier League’s Profitability and Sustainability Rules (PSR).
Before the points deduction was announced, Everton sat 15th in the Premier League table, four points above the bottom three. They now drop below Brentford into 16th place on 27 points, two points and two places above 18th-placed Luton.
According to the written reasons published by the independent commission handling the case, Everton breached their allowed spending of a £105m loss over three seasons by £16.6m.
Everton say they and their legal team have “begun the preparations to appeal the Commission’s decision”. Should they confirm that appeal, then a decision on that must be heard by May 24, which is five days after the end of the Premier League season.
How the bottom half of the Premier League now looks
Everton were also deducted 10 points in November for exceeding permitted losses by £19.5m over a period ending with the 2021/22 season. However, this was reduced to six points following a successful appeal.
Everton were charged again in January, along with Nottingham Forest, for breaching PSR rules over a period ending with the 2022/23 season. Forest were handed a four-point deduction and have appealed against the decision.
The written reasons for this latest case stated Everton argued multiple mitigating factors – including the fact they already been penalised for some seasons which overlap the new breach, the loss of sponsorship from USM Services due to the Russian invasion of Ukraine and the fact they admitted breach at the first opportunity.
The commission felt the breach is “broadly consistent” with the four-point deduction handed to Nottingham Forest.
‘Everton now have clarity’
Sky Sports News’ Anton Touloi at Goodison Park:
“The points deduction is based on what has been called a ‘significant breach’ of the rules. They were allowed to lose up to £105m. They had already been deducted 10 points for breaching those rules in the previous financial year, which was reduced to six on appeal.
“They released their accounts for last year last week and it was an £89.1m loss. Everton lost significant revenue in that period, such as the USM sponsorship deal through Alisher Usmanov.
“At least Everton now know the worst-case scenario. They are now two points above the relegation places and they have some huge games, starting with Monday Night Football against Chelsea (next week). They then face three games at Goodison Park in just six days.
“In a points-deduction derby, they take on Nottingham Forest, then Liverpool in the Merseyside derby, and then Brentford – who they are now two points below in the table.
“Remember, they still have to play Luton and Sheffield United. Sean Dyche was saying he just wanted clarity and they now have that.”
PSR explained: What limits clubs spending more?
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Sky Sports’ Sam Blitz explains what the Premier League’s profitability and sustainability rules are and how they affect clubs’ ability to spend.
In the simplest terms, when every Premier League team tots up their annual accounts, they can have made a loss no greater than £105m across the previous three seasons.
Clubs can only lose £15m of their own money across those three years. So that’s no more than £15m extra on outgoings like transfer fees, player wages and, in a lot of clubs’ cases, paying off former managers compared to their income from TV payments, season tickets, selling players and so on.
The other £90m of any £105m must be guaranteed by their owners buying up shares, known as ‘secure funding’, and essentially means bankrolling the club.
Everton’s fixture run-in
Monday April 15: Chelsea (a) – kick-off 8pm, live on Sky Sports’ Monday Night Football
Sunday April 21: Nottingham Forest (h) – kick-off 1.30pm, live on Sky Sports
Wednesday April 24: Liverpool (h) – kick-off 8pm, live on Sky Sports
Saturday April 27: Brentford (h) – kick-off 5.30pm, live on Sky Sports
Friday May 3: Luton (a) – kick-off 8pm, live on Sky Sports
Saturday May 11: Sheffield United (h) – kick-off 3pm
Sunday May 19: Arsenal (a) – kick-off 4pm
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