Everton Football Club has been handed a further two-point deduction by an independent commission for breaching the Premier League’s profitability and sustainability rules (PSRs).
The announcement was made on Monday, sending shockwaves through the football community.
This decision comes as an addition to the previous six-point penalty imposed on Everton for the same PSR violation, leaving the Merseyside club with a slim two-point margin above the relegation zone. With only seven games remaining this season, Everton finds itself in a precarious position.
The Premier League released a statement on Monday confirming the immediate two-point deduction. The independent commission, after conducting a thorough three-day hearing last month, considered the evidence and arguments presented by the club. Everton acknowledged their breach of £16.6 million and put forth various mitigating factors, including the impact of the consecutive PSR charges. Based on these deliberations, the commission determined that a two-point deduction was an appropriate sanction, which takes effect immediately.
Everton’s financial accounts for the 2022/23 season, published last month, revealed staggering losses amounting to £89.1 million ($112 million). This represents a significant increase compared to the previous season, where the club reported a deficit of £44.7 million. The club attributes the rise in losses to the indefinite suspension of sponsorship deals with key commercial partners, citing it as a mitigating factor.
It’s crucial to note that the initial six-point penalty imposed on Everton earlier this season was also related to PSR breaches during the 2021/22 campaign. The PSR regulations dictate that clubs can incur a maximum loss of £105 million over a three-season period, or £35 million per term, before facing sanctions.
Under scrutiny, majority shareholder Farhad Moshiri expressed confidence in the ongoing takeover of the club by 777 Partners. He remains optimistic that the deal will be finalized soon, as Everton aims to relocate to the state-of-the-art Bramley-Moore Dock stadium for the start of the 2025/26 season.
Everton, a mainstay in the top flight of English football for the past 70 years, now faces an uphill battle to secure their position and regain stability amidst the financial and on-field challenges they currently encounter.