Everton Football Club have been dealt a blow after being deducted two points for a second breach of Premier League financial rules.
The deduction comes after an independent commission found Everton to have exceeded the permitted £105 million loss over a three-year period, breaching it by £16.6 million for the period up to 2022-23.
As a result of this penalty, Everton now find themselves dropping one place in the Premier League standings to 16th position, hovering just two points above the relegation zone.
This setback follows a previous deduction of 10 points, which was later reduced to six on appeal in February, for the three-year period up to 2021-22.
In response to the latest deduction, Everton has announced its intention to appeal the decision.
The independent commission, in its written reasons, disclosed that the Premier League had initially sought a five-point deduction for the club. However, the commission determined that any breach of Profit and Sustainability Rules (PSR) warrants a three-point deduction, with an additional two points imposed due to the significant nature of Everton’s breach, which exceeded the threshold by 15.8%.
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Despite the penalty, the commission acknowledged Everton’s efforts to mitigate the situation, including the club’s cooperation, early admission of guilt, and the impact of external factors such as the war in Ukraine.
Consequently, the commission reduced the punishment by two points, further citing the loss of sponsorship revenue as a mitigating factor.
As the Toffees navigate through this challenging period, their focus remains on securing their Premier League status while continuing their efforts to address financial compliance issues.