Everton have received an immediate 10-point deduction after being found to have breached the Premier League’s profit and sustainability rules.
The punishment is the most severe in the competition’s history, and it drops Everton to 19th on the table with a new total of four points.
The club was “both shocked and disappointed” by the “wholly disproportionate and unjust” decision.
Everton has stated that they will appeal the ruling.
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The Premier League sent Everton to an independent panel in March, but did not specify the nature of the alleged violation.
Everton reported financial losses for the fifth consecutive year in March, following a £44.7 million deficit in 2021-22.
Premier League clubs are allowed to lose £105 million over a three-year period, and Everton admitted to breaking the profit and sustainability regulations (PSR) for the fiscal year ending 2021-22.
Following a five-day hearing in October, the commission ruled in favor of the Premier League, determining that Everton’s losses during that time period were £124.5 million.
In a statement, Everton said: “The club does not recognise the finding that it failed to act with the utmost good faith and it does not understand this to have been an allegation made by the Premier League during the course of proceedings.
“Both the harshness and severity of the sanction imposed by the commission are neither a fair nor a reasonable reflection of the evidence submitted.
“The club will also monitor with great interest the decisions made in any other cases concerning the Premier League’s profit and sustainability rules.”
The points deduction comes at a critical juncture for Everton.
Farhad Moshiri, the club’s owner, decided to sell his 94% ownership to American investment firm 777 Partners in September. The takeover is proceeding through regulatory channels, and sources claimed it was on track to be completed by next month before this ruling.
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