After receiving a ten-point punishment from the Premier League, Everton has fallen back into the relegation zone. The commission reviewed the only allegation of Financial Fair Play violation from the previous season and reached its judgment based on that analysis.
The Premier League made clear that Everton will lose 10 points due to the club’s failure to adhere to the league’s profitability and sustainability standards (PSR).
Due to the instant penalty given by the independent committee, the Toffees will fall from 14th place to the relegation zone. After this punishment, Everton sit just above bottom club Burnley only because of their superior goal differential.
This matter was brought to the independent panel earlier this year after the Premier League announced it had filed a complaint against the Merseyside club: “The Commission determined that Everton FC’s PSR Calculation for the relevant period resulted in a loss of 124.5 million pounds [$154.70m], as contended by the Premier League, which exceeded the threshold of 105 million pounds permitted under the PSRs.”
In March, the Premier League sent Everton to an impartial commission without disclosing the nature of the club’s alleged infraction. In that particular month, Everton reported a $55.7 million deficit for the 2021-22 fiscal year, marking the fifth consecutive year of financial losses for the club.
Then, they came clean about breaking FFP rules in the fiscal year that ended in 2021-22. The commission’s ruling in favor of the Premier League came after a five-day hearing in October.
As stated by Everton in a press release: “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 brought by the commission are neither a fair nor a reasonable reflection of the evidence.
“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 team managed by Sean Dyche is reportedly appealing the decision immediately. However, the club will need to put their best foot forward in the courtroom.
In September, owner Farhad Moshiri decided to sell his 94 percent ownership in the club to ‘777 Partners‘. The takeover is now undergoing regulatory procedures. Sources suggest that it was on track to be complete by the beginning of December, prior to the points deduction.
The new Bramley-Moore Dock stadium is now under construction and will debut in the latter half of 2024. But to make matters worse for the Toffees, three teams who have finished below are preparing legal action.
Since the story aired, Leeds United and Burnley have reached out to the Premier League. They are requesting an investigation on whether Everton infringed spending rules during the COVID-19 pandemic. The Athletic reports that the probe took place due to a letter. This had the co-signartures of Leeds CEO Angus Kinnear and Burnley chairman Alan Pace.
The Daily Mail have added that in addition to Leeds and Burnley, Leicester City are planning to sue Everton. They are seeking 373 million dollars in damages. Senior executives from all three clubs reportedly met on Friday afternoon to discuss their intention to sue.
Leeds and Leicester have decided to make good on their threats to sue Everton. This comes after both clubs were the victims of relegation from the Premier League.
Photo credits: IMAGO / PA Images : IMAGO / PA Images
