3 min read

Everton receives points penalty reduction following appeal


English Premier League club Everton has successfully appealed against this season’s points deduction imposed due to their breach of EPL profitability and sustainability rules. Originally facing a 10-point penalty, the independent panel overseeing the appeal has reduced it to six points.

This adjustment moves Everton’s total points to 25 and elevates them to 15th place in the Premier League table – importantly, five points clear of the relegation zone with 12 matches remaining. The appeal board identified legal errors in two out of nine grounds raised by Everton in their appeal, prompting the reduction in the penalty.

A statement from the Premier League announced the outcome: ‘An independent appeal board has concluded that the sanction for Everton FC’s breach of the Premier League’s profitability and sustainability rules for the period ending season 2021/22, will be an immediate six-point deduction.

‘This follows the club’s appeal of an independent commission’s decision in November 2023 to impose a 10-point deduction for the club’s breach of the PSRs.

‘Everton FC appealed the sanction imposed against it on nine grounds, each of which related to the sanction rather than the fact of the breach, which the club admitted. Two of those nine grounds were upheld by the appeal board, which has substituted the original points deduction of 10 for six.’

The appeal focused on the severity of the punishment rather than disputing the breach itself, which Everton had admitted. The two upheld grounds pertained to the commission’s misjudgement regarding Everton’s disclosure about their Bramley Moore Dock debt and their failure to consider relevant benchmarks for points deduction penalties in English football.

Everton faced the initial 10-point deduction after the commission found their losses up to the 2021-22 season totalled £124.5 million. Additionally, a second charge arose in January related to the club’s 2022-23 financial accounts, particularly concerning interest payments on their new £760 million stadium.

These developments occurred amidst significant changes within the club, notably owner Farhad Moshiri’s announcement of intentions to sell his 94 percent stake to US private equity firm 777 Partners.

Responding to the reduced points deduction, Everton released a statement expressing satisfaction with the outcome.

‘While the club is still digesting the appeal board’s decision, we are satisfied our appeal has resulted in a reduction in the points sanction,’ the club’s statement read.

‘We understand the appeal board considered the 10-point deduction originally imposed to be inappropriate when assessed against the available benchmarks of which the club made the commission aware, including the position under the relevant EFL regulations, and the nine-point deduction that is imposed under the Premier League’s own rules in the event of insolvency.

‘The club is also particularly pleased with the appeal board’s decision to overturn the original commission’s finding that the club failed to act in utmost good faith. That decision, along with reducing the points deduction, was an incredibly important point of principle for the club on appeal. The club, therefore, feels vindicated in pursuing its appeal.’

The statement also highlighted the club’s vindication in overturning the commission’s finding that Everton failed to act in utmost good faith, emphasising the importance of this decision on appeal. Everton reaffirmed their commitment to cooperating with the Premier League regarding the ongoing charges.

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