Everton have been deducted two points for their second breach of Premier League financial rules

April 8, 2024, 2:02 p.m. BST

Updated 20 minutes ago

image source, Getty Images

image description,

The 2024-25 season is set to be Everton's final year at Goodison Park, their home ground since 1892, before they move to a new stadium at Bramley-Moore Dock

Everton have been deducted two points for a second breach of Premier League financial rules.

The Profit and Sustainability Rules (PSR) allow clubs to lose £105m over three years and an independent commission found Everton exceeded this by £16.6m in the three-year period to 2022/23.

They drop one place to 16th and are now two points above the relegation zone.

Everton says the club will appeal the decision.

In its written justification, the independent commission said the Premier League had demanded a five-point deduction for the club.

The Commission decided that each breach of the PSR warranted a deduction of three points, with a further two points given that Everton's breach amounted to £16.6m – 15.8% over the £105m threshold – is considered significant.

However, the Commission accepted Everton's arguments for mitigation in relation to the fact that the club did the following:

• Points have already been deducted this season
• There was a loss in sales due to the suspension of a sponsorship agreement with the Russian company USM
• Admitted guilt early

The commission concluded that the fact that Everton had already been punished this season warranted a two-point reduction in punishment, with a further point for loss of sponsorship income and early admission of guilt.

An Everton statement said: “Although the club has taken the position that no further sanction is appropriate, the club is pleased to see that the commission has acknowledged the majority of the issues raised by the club, including the concept of double punishment “significant mitigating circumstances faced by the club due to the war in Ukraine, as well as the club's high level of cooperation and early acknowledgment of the breach.”

The Toffees added that the club was “extremely concerned” about the “inconsistency” of penalties, with four different committees handing out four different point deductions this season.

Nottingham Forest are the other Premier League club to be charged with PSR breaches this season, having four points deducted in March despite appealing.

Championship club Leicester have also been charged by the Premier League over alleged breaches of spending rules over the last three seasons in the top flight.

There is no guarantee Everton's appeal will be heard before the final games of the Premier League season on May 19, when Everton travel to Arsenal.

The 2023/24 season will technically remain “live” until the AGM in June, when the relegated clubs will transfer their certificates and May 24 has been chosen as the “backstop date” for the appeal process to be completed.

This second withdrawal comes at a time of great uncertainty at Everton.

In September, owner Farhad Moshiri agreed to sell his 94 percent stake in the club to American investment fund 777 Partners. The takeover is currently going through regulatory processes and the club is still awaiting approval from the Premier League.

Everton are also in the process of building a new stadium on the banks of the River Mersey at Bramley-Moore Dock, due to open in late 2024.