Photo: PETER POWELL/AFP
Everton became the first Premier League club to be awarded points for breaching profitability and sustainability rules (PSR), when the league took the club 10 points over their finances in the 2020-21 season.
An independent commission imposed an immediate deduction which will see Everton in 14th place in the league drop into the relegation zone by four points, above bottom side Burnley on goal difference.
The club described the decision as unfair and vowed to appeal.
The Premier League referred the case to the independent commission earlier this year.
“During the proceedings, the club admitted it was in breach of the PSRs for the period ending the 2021/22 season but there was still a dispute over the extent of the breach,” the league said in a statement.
“The Commission found that Everton FC’s PSR Calculation for the relevant period resulted in a loss of £124.5 million, as argued by the Premier League, which exceeded the £105 million threshold allowed under the PSRs.”
Everton’s latest figures showed a fifth straight year of losses, with their total loss over that period amounting to more than £430 million.
The club said they had posted a £44.7 million loss for the 2021-22 season earlier this year.
After three straight years of losses in excess of £100 million, Everton said they had made significant reductions in their losses, down by £76 million from a loss of £121 million the previous year.
While Everton’s 10-point deduction for breaching the league’s financial rules is unprecedented, points have been awarded to clubs in the English top flight before.
Middlesbrough were stripped of three points in 1997 when they failed to perform against Blackburn Rovers, while Portsmouth were penalized nine points in 2010 when they went into administration.
Everton have narrowly avoided relegation for the past two seasons.
‘The hearing is excellent’
The independent commission said Everton’s position was theirs.
“It is Everton’s responsibility to ensure that it complies with the PSR regime. The excess over the threshold is significant. The consequence is that Everton’s culpability is great,” he said in his written reasons.
“We cannot .. ignore the fact that the failure to adhere to the PSR regime was because Everton irresponsibly took the chance that things could turn out positively.”
The Premier League said one of the factors contributing to Everton’s failure was overspending on players despite repeated warnings.
Everton to appeal
Everton said the sanction was “completely disproportionate and unfair” and announced its intention to appeal the decision to the Premier League.
“Everton points out that it has been open and transparent in the information it has provided to the Premier League and has always respected the integrity of the process,” he said.
“The severity and severity of the sanction imposed by the Commission is not a fair or reasonable reflection of the evidence submitted.”
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