by Everton plan to appeal against their two-point deduction for a second breach of the Premier League’s profit and sustainability rules, but face another hearing and the prospect of further punishment.
The Toffees, who were handed six points earlier this season for breaking PSR rules in the assessment period up to the 2021-22 season, have been given another penalty for the three-year cycle to 2022-23 after incurring a £16.6 million breach acknowledgment .
The penalty drops them one place to 16th in the Premier League table, two points above the relegation zone.
An independent commission was unable to decide whether there was a further breach of £6.5m costs. That case will be heard at an unspecified date, and the PA news agency understands it is likely to result in any punishment next season.
The Premier League said in a statement: “Everton FC has been handed an immediate two-point deduction by an independent commission for breaching the Premier League’s profitability and sustainability rules (PSRs) for the period ending the 2022/23 season.
“Over a three-day hearing last month, the independent commission heard evidence and arguments from the club regarding a range of possible mitigating factors for its admitted breach of £16.6 million, including the impact of the two charges PSR in a row.
“Having done so, the Commission determined that the appropriate sanction was a two-point deduction, which will take effect immediately.
“The independent commission reiterated the principle that any breach of the PSRs is significant and indeed warrants a sporting sanction.”
The independent commission’s written reasons stated that there was an issue regarding the capitalization of £6.5m and additional interest that has yet to be resolved.
“We accept that this postpones the resolution of part of this dispute,” the independent commission said.
“The Commission is acutely aware that there are many stakeholders – to name a few: the PL, Everton, Everton fans, all other Premier League clubs, the public – who have an interest in a speedy decision on these disciplinary proceedings .
“However, in the interests of fairness to the parties in these proceedings, the Commission has determined that the outstanding issues cannot be dealt with in accordance with the timetable set out in the standard instructions.”
As for the penalty imposed, the written reasons show that the Premier League felt that five points was the appropriate starting point for a sanction, made up of three for the PSR breach and two for breaching the upper loss threshold of 15.8 per cent – £16.6m.
But the independent commission deducted two points because Everton had already been penalized this season “for losses in years overlapping with the years in question in these proceedings”.
Another point was reduced to a combination of the loss of the sponsorship of the Russian company USM and the fact that the club admitted guilt at the first opportunity.
Despite this, Everton plan to appeal against the two-point penalty.
The Toffees said in a statement: “While it is the club’s position that no further sanction was appropriate, the club is pleased to see that the Commission has given credence to the majority of the issues raised by the club, including the concept of a penalty double. , the significant mitigating circumstances facing the club due to the war in Ukraine, and the high level of cooperation and early entry into the club’s breach.
“Everton remains committed to working with the league on all matters relating to PSR but is deeply concerned by the inconsistency in the various commissions in relation to point deductions applied.
“The club would like to thank the Fans Advisory Board and other fan groups for their submissions throughout this process, and all Evertonians for their continued patience and unwavering support.
“The club and its legal representatives have begun preparations to appeal against the Commission’s decision.”
Everton found out in February that their November penalty appeal for their first PSR infringement had been reduced from 10 points to six.
The appeal board rejected seven grounds of mitigation put forward by the club, but found that the original commission had made legal errors.
Last month, fellow Premier League strugglers Nottingham Forest were penalized for their own PSR infringement, which left them with four penalty points.
The Premier League said Forest had admitted breaching those rules by £34.5m over the £61m allowed threshold.
Forest awaiting the results of their appeal.
Also last month, Leicester referred an independent commission from the Premier League for an alleged breach of PSR for the period ending 2022-23.
Championship bosses announced they had launched “urgent legal proceedings” against the Premier League and the EFL.
The Premier League has yet to issue an update on the 115 charges laid against Manchester City in February 2023 for alleged breaches of financial rules.
Premier League chief executive Richard Masters told MPs in January that a date had been set and the situation was “moving forward”.
Everton have seven Premier League games left this season and travel to Chelsea next Monday.
The club is still in the middle of a lengthy takeover, with owner Farhad Moshiri recently saying the sale was “right at home” after initially agreeing a deal with prospective owners 777 Partners last September.
