Everton vows to appeal historic points deduction

Everton became the first Premier League club to be deducted points for breaching profitability and sustainability rules (PSR), when the league docked the club 10 points over their finances in the 2020-21 season.

An independent commission imposed an immediate deduction which will see Everton drop from 14th in the league into the relegation zone with four points, above bottom side Burnley on goal difference.

The club described the decision as unjust and vowed to appeal.

The Premier League had referred the case to the 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,” the league said in a statement.

“The Commission determined that Everton FC’s PSR Calculation for the relevant period resulted in a loss of £124.5 million, as contended by the Premier League, which exceeded the threshold of £105 million permitted under the PSRs.”

Everton’s most recent figures showed a fifth straight year of losses, with their total loss over that period amounting to over £430 million.

The club said they had posted a loss of £44.7 million for the 2021-22 season earlier this year.

After three straight years of losses in excess of £100 million, Everton said they had made significant reductions to their losses, down £76 million from the previous year’s loss of £121 million.

While Everton’s 10-point deduction for breaching the league’s financial rules is unprecedented, clubs in England’s top flight have been docked points before.

Middlesbrough had three points deducted in 1997 when they failed to fulfil a fixture against Blackburn Rovers, while Portsmouth were given a nine-point penalty in 2010 when they entered administration.

Everton narrowly avoided relegation in the last two seasons.

‘Culpability is great’

The independent commission said the position Everton found themselves in was of their own making.

“It is Everton’s responsibility to ensure that it complies with the PSR regime. The excess over the threshold is significant. The consequence is that Everton’s culpability is great,” it said in its written reasons.

“We .. cannot ignore the fact that the failure to comply with the PSR regime was the result of Everton irresponsibly taking a chance that things would turn out positively.”

The Premier League said one of the factors that aggravated Everton’s default was over-spending on players despite repeated warnings.

Everton to appeal

Everton said the sanction was “wholly disproportionate and unjust” and announced its intention to appeal the decision to the Premier League.

“Everton maintains that it has been open and transparent in the information it has provided to the Premier League and that it has always respected the integrity of the process,” it said.

“Both the harshness and severity of the sanction imposed by the Commission are neither a fair nor a reasonable reflection of the evidence submitted.”