Everton docked two more points for second breach of financial rules

Everton were docked two more points by the Premier League on Monday, their second point deduction this season, after an independent commission determined they violated the league's Profitability and Sustainability Rules (PSR).

The deduction, announced in a Premier League statement, drops Everton to 16th place with 27 points, two points above the relegation zone.

Everton announced that they would appeal the points deduction, which means that the relegation battle could last beyond the season's final day on May 19.

"The independent commission heard evidence and arguments from the club on a range of potential mitigating factors for its admitted breach of 16.6 million pounds ($21 million), including the impact of its two successive PSR charges," the Premier League said.

"The commission determined the appropriate sanction to be a two-point deduction, taking effect immediately."

Everton admitted to a breach of PSR for the assessment period ending with the 2021-22 season, incurring losses totaling 124.5 million pounds. The club were later docked 10 points in November for that violation, which was reduced to six on appeal in February.

The club was charged again in January with violating the Premier League's PSR in their financial records for the period 2019-20 to 2022-23.

While the Merseyside club did not dispute the Premier League's approach to a second sanction, they cited mitigating circumstances such as double jeopardy, the loss of a sponsorship deal with Russian company USM, and the fact that they had quickly admitted their guilt.

"While the club's position has been that no further sanction was appropriate, the club is pleased to see that the commission has given credit to the majority of the issues raised by the club," Everton said.

"Everton remains committed to working collaboratively with the League on all matters relating to PSR but is extremely concerned by the inconsistency of different commissions in respect of points deductions applied."

"The club and its legal representatives have begun the preparations to appeal the commission's decision."

According to Premier League guidelines, clubs risk breaching PSR if they lose more than 105 million pounds ($132.62 million) over three seasons, or 35 million pounds per year.

The club previously admitted to a breach of PSR for the assessment period ending with the 2021-22 season, resulting in losses of 124.5 million pounds, according to the independent commission.

Everton stated in January that the first charge, for which they had already received a sanction, covered 75% of the time period of their second breach.

In its written reasoning, the independent commission agreed with the Premier League that a five-point deduction was appropriate, but reduced it to two after considering Everton's mitigation arguments.

Everton's Fan Advisory Board had also requested that the panel "consider the implications of a further points deduction on supporters, Everton's staff, the local community, and the broader football family".

However, this was rejected.

"As a matter of principle, it would be wrong for the views of Everton FAB to impact the appropriate sanction, particularly in circumstances where the supporters of other clubs would undoubtedly have other views they would ask us to consider," the panel found.

While Everton were the first club to be docked points for failing to comply with PSRs, Nottingham Forest dropped into the relegation zone earlier this month after having four points docked for breaking financial rules last season.

Forest are 17th with 25 points, having played one more game than Everton, and lead Luton Town in 18th place on goal difference. Forest are also appealing their sanction, and with Everton set to do the same, clubs in the relegation zone will not know how many points they need to stay up.

The Premier League has set a backstop date of May 25 for all appeals to be resolved.

Last year, Manchester City were referred to an independent commission over more than 100 alleged financial rule violations, but no verdict has been reached. City have denied any wrongdoing.

SportsLigue