Everton have been dragged closer to a first top-flight relegation in 73 years after being docked two points for failing to comply first division Profitability and Sustainability Rules (PSR) until 2023. It is the financially troubled club's second PSR-related points deduction of the season and leaves Sean Dyche's side two points above the relegation zone with seven games remaining. .
An independent commission imposed the sanction with immediate effect after Everton admitted breaching the PSR by £16.6m over the three-year period ending June 2023. The club was discounted a record 10 points in November for overspending of £19.5m in the four-year period to 2022 (the two-year figures were taken together due to the Covid pandemic), although that was reduced to six points on appeal.
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Everton, who intend to appeal the second punishment, claimed they suffered double jeopardy with the second charge as two of the three years involved were part of their first offence. Unlike the English football league, the Premier League does not have guidelines for dealing with financial years that are already subject to sanctions. The club also believes the £105m threshold for losses over a three-year period is outdated and has not kept up with inflation in wages and transfer fees in football over the past 10 years.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 committee has given credence to the majority of the issues raised by the club, including the concept of double punishment, the significant extenuating circumstances faced by the club due to the war in Ukraine, and the high level of cooperation and early admission of non-compliance by the club.
“Everton remains committed to working collaboratively with the league on all matters relating to the PSR, but is extremely concerned by the inconsistency of the different committees regarding the point deductions applied.”
The Premier League said: “The independent commission reaffirmed the principle that any breach of the PSR is significant and justifies, and even requires, a sporting sanction.”
Everton will be at greater risk of going into administration if they suffer relegation. The latest set of accounts for the year ending June 30, 2023 revealed a loss of £89.1 million and contained another warning about the club's ability to continue as a going concern.
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The accounts also reveal that Everton, the subject of a proposed takeover by controversial US investment firm 777 Partners, has not secured the full funding needed to complete construction of its new stadium at Bramley Moore Dock.
