Everton Football Club has been hit with an immediate 10-point reduction after breaching financial rules set out by the Premier League. The losses the club had to 2021-2022 exceeded £124.5m, which is in excess of the permitted £105m. The sanction is the largest ever lodged against a team in the Premier League and leaves Everton in the relegation zone.
The club has said it is both shocked and disappointed by the punishment and will appeal. In March, the Premier League referred Everton to an independent body for its financial breaches. However, the club refused to acknowledge that its actions did not operate in good faith, and it does not understand how this allegation was made.
The commission chair, David Phillips, referenced claims for compensation submitted by Nottingham Forest, Burnley, Southampton, Leeds United, and Leicester City. Phillips said he was satisfied that the applicant clubs had potential claims for compensation. However, it is the Premier League’s role to bring and prosecute claims, he said.
The “excess over the threshold is significant”, the commission said. It continued by adding that Everton’s mismanagement had been its own doing and referred to the club’s desire for on-field improvement as the motive for overspending. The club also suffered from an inability to sell, alongside a lower than anticipated league finish.
Everton finished the 2020-2021 season with financial losses for the fifth consecutive year and had a deficit of £44.7m. The club admitted breaching the profit and sustainability rules (PSR) for the claims submitted to 2021-2022. Everton has also undergone a takeover in which Farhad Moshiri, its owner, agreed to sell his 94% stake to American investment fund 777 Partners. The sale is pending regulatory approval and is expected to be finalized next
Read the full article from The BBC here: Read More