Everton has been subjected to an immediate 10-point deduction for violating the Premier League’s profit and sustainability rules.
What happened?
The Premier League referred Everton to an independent commission in March but did not disclose the specifics of the club’s alleged breach according to BBC Sport.
The independent commission, which the club was referred to in March, held a hearing in October regarding alleged breaches for the 2021-22 season.
The alleged breaches were related to accounting treatments, with the League contending that Everton violated profit and sustainability rules.
Everton posted an enormous financial loss of almost £ 372 million over three years.
Meanwhile, the Toffeess’ financial losses of nearly £372 million over three years far exceed the Premier League’s permitted limit of £250 million for three years.
After a five-day hearing in October, the commission sided with the Premier League, finding that Everton’s losses during that period totaled £124.5 million.
Independent commission has found the Toffees guilty therefore causing them a deduction of 10 points from the 14 points they have laboured for this season.
A Premier League statement on Friday afternoon, November 17, read: “An independent Commission has imposed an immediate deduction of 10 points on Everton FC for a breach of the Premier League’s Profitability and Sustainability Rules (PSRs).”
‘‘The Premier League issued a complaint against the club and referred the case to an independent commission earlier this year.”
‘‘During the proceedings, the club admitted it was in breach of the PSRs for the period ending Season 2021-22 but the extent of the breach remained in dispute.”
‘‘Following a five-day hearing last month, the commission determined that Everton FC’s PSR calculation for the relevant period resulted in a loss of £124.5million, as contended by the Premier League, which exceeded the threshold of £105million permitted under the PSRs.”
‘‘The commission concluded that a sporting sanction in the form of a 10-point deduction should be imposed. That sanction has immediate effect.’’
This occurs as the largest sporting sanction in the history of the competition, leaving Everton in 19th place in the table with a new total of four points.
Everton seek to appeal the verdict
The club expressed their shock and disappointment at what they see as an unfair and disproportionate ruling.
The deduction of 10 points by the Premier League has pushed Sean Dyche’s team into the relegation zone.
This sudden decision was a devastating blow for Everton, who had recently won two out of their last three games and were comfortably placed in 14th position, away from the relegation struggle that had plagued them in the past two seasons.
Everton plans to appeal the verdict vigorously, denying any breach of PSR and attributing their financial losses to the construction of a new stadium at Bramley Moore Dock, and the question of whether the interest payments on that development were allowed.
Nevertheless, despite seeking to appeal the deduction for breaching financial rules, the Merseysiders now find themselves with only four points, equaling the tally of bottom-of-the-table Burnley.
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