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In a significant blow to Everton’s Premier League campaign, the club has been docked two points for a second breach of the league’s financial rules. This deduction places Everton one spot lower in the league table, now standing at 16th and just two points above the relegation zone.
The breach stems from the Profit and Sustainability Rules (PSR), which allow clubs to incur losses up to £105 million over a three-year period. An independent commission found Everton exceeded this threshold by £16.6 million for the accounting period ending in 2022-23. Consequently, the club faced a points deduction, with the commission justifying the punishment due to the significance of the breach.
Everton’s appeal against the decision is underway, as they contest the ruling. However, they could potentially face further punishment related to interest costs associated with the construction of their new stadium at Bramley-Moore Dock.
Despite the setback, the club expressed gratitude for the commission’s acknowledgment of various mitigating factors, including Everton’s previous points deduction earlier in the season, revenue loss from a suspended sponsorship deal, and an early admission of guilt.
The decision underscores ongoing concerns about financial stability within the Premier League, with Everton becoming the latest club to face sanctions under the PSR regulations. Nottingham Forest and Championship side Leicester City are among other clubs implicated in similar breaches this season.
With Everton’s appeal pending, the outcome could have implications for the club’s survival in the Premier League. The situation adds to the uncertainty surrounding Everton, amid ownership transition and ongoing stadium development.
