Everton in huge trouble! Premier League management punishes club with highest ever deduction

English football club Everton received the heaviest points penalty in Premier League history when it was given a ten-point deduction for breaching Financial Fair Play (FFP) rules. Everton intends to appeal against the decision of the Independent Panel.

Everton have been punished by the English Premier League management for a financial fair play violation relating to the period towards the end of the 2021/22 season.

The breach relates to an overspend of £19.5 million, which is mainly related to interest payments for the construction of Everton’s new stadium. It should be noted the cost of the Bramley-Moore Dock Stadium is £760 million.

The Independent Commission found Everton guilty of misleading information regarding the financing of the stadium. This is said to have led to a loss of £124.5 million for the aforementioned period. The loss therefore exceeded the £105 million limit allowed by the league’s Profitability and Sustainability Rules (PSR).

Despite Everton’s shock and disappointment at the verdict, the club intends to appeal the decision, arguing that the penalty is disproportionate and unfair. The immediate consequence of the 10 point deduction means Everton will find themselves in the relegation zone of the league table. More specifically, it will drop from 14th to 19th.

This is the first time in Premier League history that a club has received such a heavy penalty for breaching FFP guidelines. At the same time, Liverpool became the third club in the history of the English top flight to have points deducted.

Everton insists on appeal, legal threats are also in the air

Earlier in 2010, Portsmouth lost nine points for going into receivership, which led to relegation. Middlesbrough received a three-point deduction for an unjustified postponement in 1997.

In any event, the club insists on its openness and transparency in providing information to the competition management and claims that the committee’s decision does not match the evidence presented. Everton’s appeal is expected to be concluded before the end of the season, which could have an impact on its league position.

In addition, legal threats are hovering over Everton from clubs that have previously been relegated from the Premier League. These include Leeds, Leicester, Burnley and Southampton. They are considering suing Everton’s potential new owners, 777 Partners, for damages if the guilty verdict stands, which could lead to a reduction in the club’s purchase price.

Other Premier League clubs, including Manchester City and Chelsea, are also under scrutiny for possible breaches of financial rules, with investigations and legal cases challenging league regulations ongoing.

Source: Premier League, The Athletic, Sky Sports