Everton Hit with 10-Point Deduction for Breaching EPL Financial Rules

In a significant blow, Everton has been penalized with a massive 10-point deduction by the English Premier League (EPL) for allegedly breaching profitability and sustainability regulations during the 2021/2022 season. The Toffees, who were referred to an independent commission in March, saw their hearing conclude last month, resulting in the confirmed 10-point deduction.

The independent commission found that Everton’s loss for the relevant period amounted to £124.5 million, exceeding the £105 million threshold permitted under EPL rules. This deduction drops Everton to 19th place in the league table, just above Burnley on goal difference.

While Everton acknowledged breaching regulations, they disputed the extent of the calculated loss. The club expressed shock and disappointment at what they deemed a “wholly disproportionate and unjust” punishment. Everton, asserting full cooperation and good faith throughout the process, plans to appeal the decision, citing the sanction as unduly harsh compared to the evidence submitted.

This action against Everton is only the second instance of such penalties in the EPL, with the precedent set when Manchester City faced charges for over 100 financial fair play breaches last season. Despite precedents in the League, punishing clubs for profitability breaches is unprecedented in the EPL. Everton’s significant spending after Farhad Moshiri’s 2016 takeover has left them financially exposed, with cost-cutting measures unable to sufficiently curb losses of £370 million from 2018 to 2021.

The 10-point deduction places Everton in the relegation zone alongside Burnley with 4 points. The club now faces an anxious wait to see if their appeal is successful and how other clubs might be affected by similar sanctions, all while battling for survival in the EPL.