Everton have been deducted two points for breaching the Premier League’s Profitability and Sustainability Rules (PSR) for a second time – adding another twist to the relegation battle.
Everton breached their allowed spending- under the PSR rules – of a £105m loss over three seasons by £16.6m.
The points deduction means the Merseyside club drop below Brentford into 16th place on 27 points, two points and two places above 18th-placed Luton.
Everton immediately announced their intention to appeal against the decision. Should they confirm that appeal, then a decision on that must be heard by May 25, which is the week after the end of this Premier League season.
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Sky Sports reporter Anton Toloui explains why Everton have been deducted two more points by the Premier League
With lots of question marks and doubts for Everton and their relegation rivals, football finance expert Kieran Maguire runs through the key issues…
Why were Everton deducted two points this time?
The original tariff was five points because they were in breach by around £16.6m. That formed the initial basis of the deduction.
Because Everton had already been suffering in terms of points deductions for 2021 and 2022, they had double jeopardy, so the commission reduced the deduction down to three.
They also took into consideration the unique circumstances of Russia’s invasion of Ukraine and Everton’s relationship with Alisher Usmanov, plus the fact that Everton cooperated with the commission – and took off a further one point.
Why are Everton appealing against the decision?
Everton feel angry with the Premier League in terms of getting guidance over what the tariffs would be should there be a breach of the rules.
They also feel the Premier League has been very aggressive with its interpretation of the interest charges from the creation of the new stadium.
Everton have been spending money on a new stadium, which will be ready for the 2025/26 season
The Premier League initially wanted a 10-point deduction in regard to Everton’s first case. They lost less money than Nottingham Forest, yet Forest were potentially going to get a seven or eight-point deduction if the Premier League got their way. So Everton feel there has been a lack of consistency.
When would an appeal be heard?
The backstop date is around May 24 or 25. It’s done on a cab-rank approach so we’ve got to have the Nottingham Forest case take place first. In the ideal situation, Everton are safe regardless of the two points before the end of the season.
But if they are in the relegation zone and the appeal is still is outstanding, we will have the ludicrous situation on the final day of the season where we don’t know who is going to be in the Championship next season.
The Premier League table after Everton’s latest points deduction
Could there be more punishments for Everton?
We know Everton lost £45m in 2022 and £89m in 2023, so that gives us a total well over the £105m limit.
If they’ve lost further monies in 2024 and, having made adjustments for what’s happened in Ukraine and the allowables, it would seem possible – then there could be more PSR breaches.
According to the written reasons, Everton and the Premier League also have a dispute over certain costs relating to the new stadium construction. The Premier League believe those costs should count towards the club’s losses, while Everton do not.
That money has not been included in the final PSR calculation and will be resolved by the same independent commission at a later date. That means Everton could also be handed more points deductions for this season’s breaches next term.
Watch Everton’s next five Premier League matches live on Sky Sports, starting with their Monday Night Football trip to Chelsea on April 15, kick-off 8pm.
Everton’s fixture run-in
Monday April 15: Chelsea (a) – kick-off 8pm, live on Sky Sports’ Monday Night Football
Sunday April 21: Nottingham Forest (h) – kick-off 1.30pm, live on Sky Sports
Wednesday April 24: Liverpool (h) – kick-off 8pm, live on Sky Sports
Saturday April 27: Brentford (h) – kick-off 5.30pm, live on Sky Sports
Friday May 3: Luton (a) – kick-off 8pm, live on Sky Sports
Saturday May 11: Sheffield United (h) – kick-off 3pm
Sunday May 19: Arsenal (a) – kick-off 4pm
