Everton’s points deduction for breaking Premier League financial regulations has been cut to six from ten following an appeal, the club announced on Monday, however they may still face further punishment for a separate expenditure.
Everton were punished points with immediate effect in November after being judged to have violated the league’s spending and loss guidelines, which were largely attributed to the escalating cost of financing their new stadium, which is currently under construction.
“An independent Appeal Board has concluded that the sanction for Everton’s breach of the Premier League’s Profitability and Sustainability Rules (PSRs), for the period ending Season 2021/22, will be an immediate six-point deduction,” according to a statement issued by the Premier League.
With the original punishment, Everton fell from 14th in the rankings to the relegation zone with four points. The club filed an appeal against the original deduction, which they described as “wholly disproportionate and unjust”.
“Everton can confirm an Appeal Board has concluded that the points deduction be reduced from 10 points to six points, with immediate effect,” the club said in a statement.
The record sanction was appealed on nine reasons, each of which related to the sanction rather than the breaches, and the Appeal Board upheld two of the nine grounds.
Everton acknowledged to a breach of PSR for the period ending with the 2021-22 season, with total losses of 124.5 million pounds, according to an independent panel.
According to Premier League standards, teams can lose up to 105 million pounds ($133.33 million) over three years.
The three-person appeal board found that the independent commission that imposed the 10-point suspension committed two legal errors.
It was judged inappropriate to punish the club for being “less than frank” in what it told the Premier League about its new stadium debt, as well as wrong “not to take into account available benchmarks,” with a six-point sentence generally in accordance with English Football League principles.
The panel dismissed the remaining grounds for appeal, stating that the club’s drop in transfer spending near the end of the four-year period under review provided “limited evidence of a more sensible approach.”
Everton won four straight games after their relegation to rise to 16th, but they have been forced back into the relegation battle after going nine league games without a win. With the reduction, they move up to 15th place with 25 points, five points above the relegation zone.
Everton, which has spent more years in the top flight than any other club, was penalized again by the Premier League in January for a different PSR violation, along with Nottingham Forest.
The Premier League stated that both teams have been referred to the chair of the Judicial Panel, who will appoint an independent commission to determine the appropriate sentence, which could include a further deduction for the Sean Dyche-managed club before the end of the season.
A second points penalty would increase the risk of the club’s first relegation since 1951 and add to the club’s future uncertainty, as they are currently in the midst of protracted takeover talks with US investment fund 777 Partners and hope to relocate to their new stadium before the 2025-26 season.
Manchester City were sent to an independent commission last year for more than 100 alleged financial regulation violations since the club’s acquisition by the Abu Dhabi-based City Football Group in 2008.
There has been no verdict in that case. Last month, Premier League CEO Richard Masters said that a hearing date had been scheduled. The City has denied any wrongdoing.
Clubs in England’s top division have previously been fined points.
Middlesbrough was docked three points in 1997 for failing to complete a fixture, while Portsmouth was docked nine points in 2010 when the financially distressed club went into administration.
($1 equals 0.7875 pounds.)