Everton has expressed strong dissatisfaction with the inconsistent nature of Premier League sanctions and has stated they are deeply concerned after being penalized with an additional two points for a second breach of financial regulations.
This setback has pushed the Toffees perilously close to their first relegation since 1951 despite securing their first league victory of the year last Saturday, leaving Sean Dyche’s squad just two points clear of the bottom three. Everton has declared their intention to challenge this latest ruling, which must be submitted within the next seven days.
The club had previously been docked 10 points in November, later reduced to six upon appeal, for a prior financial infraction. The latest deduction stems from breaching regulations during a separate financial period. Everton incurred a loss of £121.6 million during this period, exceeding the permissible threshold of £105 million.
Everton has argued that they are facing ‘double jeopardy’ given that the original penalty already addressed overspending in two of the years covered by this subsequent violation.
The independent commission, which convened over three days in March, took this argument into consideration along with mitigating factors highlighted by Everton, including the impact of lost sponsorship deals due to the conflict in Ukraine and the club’s admission of fault.
In a statement, Everton indicated, ‘While the club maintains that no additional penalty was warranted, it appreciates that the commission acknowledged the majority of the club’s concerns. Everton is committed to collaborating with the league on all issues pertaining to financial regulations but is troubled by the inconsistency in the application of points deductions by different commissions.’
The club’s frustration is compounded by the recent case of Nottingham Forest, who were docked four points last month pending an appeal. Everton laments the absence of defined penalties for breaches within the Premier League, leading to uncertainty surrounding potential sanctions.
A contentious issue between Everton and the League pertains to the treatment of interest costs to the tune of approximately £6.5 million related to the construction of a new stadium at Bramley Moore Dock. Everton asserts that these costs have been capitalized and should not be classified as losses under PSR guidelines.
This matter will be revisited by the same commission in due course, potentially resulting in an additional sanction. If, as anticipated, this issue is set aside for resolution next season, it could open the door for other clubs to pursue legal avenues, particularly in scenarios where a different team faces relegation while Everton remains in the top flight.
The release of Everton’s latest financial accounts on Easter Sunday revealed a loss of £89.1 million, raising concerns about possible future implications. It is likely that Everton will need to offload a key player before the June 30 accounting deadline to regain financial stability.
The timeline for addressing appeals within the Premier League presents a challenge, with a deadline of May 25 set for resolving any disputes. Everton’s final match of the season occurs six days earlier, potentially leading to unexpected shifts in the league table a week after the conclusion of the last fixtures.
