Everton Football Club has been hit with yet another points deduction by an independent panel for breaching the Premier League’s profit and sustainability rules (PSR). This is the second time this season that the club has faced such a penalty. The regulations state that a club cannot lose more than £105 million over a three-year period. In this case, Everton admitted to breaching £16.6 million. The two-point deduction handed down by the independent Commission has resulted in Everton dropping one place in the Premier League table to 16th, putting them just two points above the relegation zone.
One of the key points of contention between Everton and the Premier League is the accounting of funds for the club’s new stadium. While the league argues that these funds should be recorded as losses with regards to PSR, Everton maintains the opposite view. This dispute could potentially lead to an additional penalty for the club, which will be resolved at a later date. Everton has stated that they plan to appeal the decision, expressing their concerns over the inconsistency of different commissions in applying points deductions.
The independent commission’s report revealed that the initial starting point for the points deduction was five points. This was based on all breaches garnering a three-point sanction, with an additional two points added for the £16.6 million breach. However, after considering various mitigating factors presented by Everton during the hearing, the final decision was a two-point penalty. These mitigating factors included Everton’s previous punishments for some of the years in question, the loss of sponsorship money due to geopolitical events, and the club’s early admission of breaching the PSRs. The commission rejected other mitigating factors, such as the construction of Everton’s new stadium, deeming them as reflecting the normal operations of a football club. Additionally, the commission noted that Everton’s level of cooperation was not exceptional.
Previous Penalties and Future Actions
This is not the first time Everton has faced a points deduction this season for breaching the PSR. They were initially docked 10 points in November, but this penalty was reduced to six points on appeal. Another breach in January resulted in a second points deduction alongside fellow relegation battlers Nottingham Forest, who received a four-point penalty. Nottingham Forest’s charge initially warranted a six-point penalty, which was reduced to four points due to mitigating factors such as an early plea and cooperation with the investigation. With Everton planning to appeal the most recent decision, the outcome of their case remains uncertain.
Nottingham Forest’s case is not unique, as other clubs like Manchester City have also faced scrutiny over alleged breaches of finance rules. City Football Group, which owns Manchester City, has been referred to an independent commission for more than 100 such breaches. The Premier League’s chief executive has confirmed that a hearing date has been set for City’s case, though the specifics remain undisclosed. This highlights the increasing focus on financial regulations within the Premier League and the consequences for clubs found to be in violation.