Everton, already penalized with a six-point deduction (reduced from 10) earlier this season for breaching the Premier League’s Profitability and Sustainability Rules (PSR) in the assessment period up to the 2021-22 season, faced additional consequences on Monday.
They were handed a further punishment for the subsequent three-year cycle ending in 2022-23, resulting in a drop to 16th place in the Premier League table, just two points above the relegation zone.
The Premier League announced in a statement that an independent commission had immediately deducted two points from Everton FC for violating the PSRs for the period ending the 2022/23 season.
Over a three-day hearing last month, the independent commission heard evidence and arguments from the club in respect of a range of potential mitigating factors for its admitted breach of £16.6million, including the impact of its two successive PSR charges.
Having done so, the commission determined the appropriate sanction to be a two-point deduction, taking effect immediately.
The independent commission reaffirmed the principle that any breach of the PSRs is significant and justifies, indeed requires, a sporting sanction.”
An additional point was deducted due to a combination of losing sponsorship from the Russian company USM and the club admitting guilt promptly.
Nevertheless, Everton intends to appeal the two-point penalty.
Everton said in a statement
While the club’s position has been that no further sanction was appropriate, the club is pleased to see that the commission has given credit to the majority of the issues raised by the club, including the concept of double punishment, the significant mitigating circumstances facing the club due to the war in Ukraine, and the high level of co-operation and early admission of the club’s breach.
Everton remains committed to working collaboratively with the league on all matters relating to PSR but is extremely concerned by the inconsistency of different commissions in respect of points deductions applied.
The club would like to place on record its thanks to the Fan Advisory Board and other fan groups for their submissions during this process, and to all Evertonians for their ongoing patience and unstinting support.
The club and its legal representatives have begun the preparations to appeal the commission’s decision.”
In February, Everton learned that their appeal against the November punishment for their initial breach of the PSR had resulted in a reduction from 10 points to six.
The appeal board dismissed seven of the club’s mitigation arguments but did identify legal errors made by the original commission.
The Premier League has yet to issue an update on the 115 charges laid against Manchester City in February 2023 for alleged breaches of financial rules.
