• Thursday, May 30, 2024
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BusinessDay

Everton docked two points for Financial Fair Play violations 

Everton (2)

Everton has been docked two additional points, marking their second points deduction this season, following a breach of the Premier League’s Profitability and Sustainability Rules (PSR) as determined by an independent commission.

As a result of this deduction, Everton now find themselves in 16th place with 27 points, narrowly escaping the relegation zone by just two points. The club has expressed its intention to appeal against the deduction, extending the uncertainty of the relegation battle beyond the season’s final match on May 19.

The Premier League, in a statement, outlined that the independent commission considered various factors presented by Everton in defense of their admitted breach of £16.6 million ($21 million), including the impact of the successive PSR charges.

Consequently, the commission ruled for a two-point deduction, effective immediately.
“The independent commission heard evidence and arguments from the club on a range of potential mitigating factors for its admitted breach of 16.6 million pounds ($21 million), including the impact of its two successive PSR charges,” the Premier League said.

“The commission determined the appropriate sanction to be a two-point deduction, taking effect immediately.”

Everton confessed to breaching PSR for the assessment period ending with the 2021/22 season, resulting in losses amounting to £124.5 million during that timeframe. In November, the club received a 10-point deduction for this breach, later reduced to six following an appeal in February.

However, Everton faced another charge in January for violating the Premier League’s PSR in their financial records spanning from 2019-20 to 2022/23. While the club acknowledged this second sanction, they argued for mitigating circumstances, including the principle of double jeopardy, loss of a sponsorship deal, and their prompt admission of guilt.

Despite Everton’s contentions, the commission upheld the two-point deduction. The club has expressed its discontent with the inconsistency in the application of points deductions across different cases and has initiated preparations to appeal the commission’s decision.

Premier League guidelines stipulate that clubs risk breaching PSR if they incur losses exceeding £105 million ($132.62 million) over three seasons or £35 million annually. Everton’s breaches have highlighted financial challenges within football clubs and the complexities of navigating regulatory compliance in the ever-evolving landscape of the sport.

This second deduction comes at a time of significant uncertainty at Everton. The club released their accounts covering the 2022-23 season on 31 March, reporting financial losses of £89.1m.

In September, owner Farhad Moshiri agreed to sell his 94% stake in the club to American investment fund 777 Partners. The takeover is going through the regulatory processes and the club is still waiting for that to be approved by 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, which is due to open in late 2024.