Everton have been dragged closer to a first top-flight relegation in 73 years after being deducted two points for breaching Premier League profitability and sustainability rules (PSR) up to 2023. It is the financially troubled club’s second PSR-related points deduction of the season and leaves Sean Dyche’s team two points above the relegation zone with seven matches remaining.
An independent commission imposed the sanction with immediate effect after Everton admitted breaching PSR by £16.6m for the three-year period ending June 2023. The club were docked a record 10 points in November for a £19.5m overspend in the four-year period up to 2022 – two year’s figures were taken on aggregate due to the Covid pandemic – although that was reduced to six points on appeal.
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Everton, who intend to appeal against the second punishment, claimed they were suffering double jeopardy with the second charge, as two of the three years involved formed part of their first breach. Unlike the English Football League, the Premier League does not have guidelines for dealing with financial periods already subjected to punishment. The club also believes the £105m threshold for losses over a three-year period is outdated and has not kept up with inflation in wages and transfer fees in football over the past 10 years. The Premier League plans to change the rules in August. That may come too late to preserve Everton’s proud top-flight status.
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 Premier League said: “The independent commission reaffirmed the principle that any breach of the PSRs is significant and justifies, indeed requires, a sporting sanction.”
Everton will be at increased risk of administration should they suffer relegation. The latest set of accounts for the year ending 30 June 2023 revealed a loss of £89.1m and contained another warning over the club’s ability to continue as a going concern.
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The accounts also disclosed that Everton, subject of a proposed takeover by the controversial US investment firm 777 Partners, have not secured the complete financing needed to finish the construction of their new stadium at Bramley Moore dock.