Everton have been deducted a further two points for breaching the Premier League’s profitability and sustainability rules.
The latest penalty drops the Toffees to 16th in the Premier League, just two points above the relegation zone with seven games left to play.
The Goodison Park club have said they intend to appeal the deduction, with a statement saying they ‘did not consider the further sanction appropriate’.
Everton were handed a 10-point penalty in November for a PSR breach relating to the three-year period ending in the 2021-2022 season. In February this was reduced to six on appeal.
This second offence, for which Everton were referred to an independent committee in January, covers the three-year accounting period ending in the 2022-2023 season.
Everton have been hit with a further two points deduction under the Premier League’s Profitability and Sustainability (PSR) rules
The Toffees quickly announced their intention to appeal the latest penalty
The latest deduction sees Everton drop from 15th to 16th, just two points above the drop zone
Your browser does not support iframes.
Premier League PSR rules allow clubs to lose £105 million over three years and the independent committee ruled Everton exceeded that by £16.6 million until 2022-23.
Relegation rivals Nottingham Forest were left four points short in March for not adhering to PSR rules. They also appealed.
The Premier League said: ‘During a three-day hearing last month, the Independent Commission heard evidence and arguments from the club regarding a range of potential mitigating factors for the admitted £16.6 million breach, including the impact of its two consecutive PSR -cost.
‘The Commission subsequently decided that the appropriate sanction would be a deduction of two points, with immediate effect.
‘The independent Commission has reaffirmed the principle that any breach of the PSRs is significant and justifies, and even requires, a sporting sanction.’
Everton’s club statement said in response: ‘In January 2024, Everton were charged by the Premier League for breaching the permitted profit and sustainability thresholds for the assessment period ending 2022/2023.
‘The matter was referred to a Premier League committee, which today announced that Everton will receive an immediate two-point deduction.
‘While the Club’s position was that no further sanctions were appropriate, the Club is pleased to note that the Commission has recognized the majority of the issues raised by the Club, including the concept of double punishment, the significant mitigating circumstances that the Club is facing Club due to the war in Ukraine, the high level of cooperation and the early recognition of the Club’s transgression.
The news comes as a blow to Sean Dyche as he tries to save Everton from relegation
The news will only increase the pressure on Everton owner Farhad Moshiri (left).
‘Everton remains committed to working with the League on all matters relating to PSR, but is extremely concerned by the inconsistency of the various committees in relation to the points deduction applied.
‘The club would like to express its thanks to the Fan Advisory Board and other fan groups for their submissions during this process, and to all Evertonians for their continued patience and continued support.
‘The Club and its legal representatives have begun preparations to appeal the Commission’s decision.’
There could be more trouble ahead for Everton, with the independent commission’s findings stating that there will be another hearing which could lead to another points deduction in the future.
However, this will not be dealt with under the fast-track process and is therefore unlikely to be completed this season.
Dyche’s side have tried to put some distance between themselves and the drop zone, with Saturday’s 1-0 home win over Burnley a big boost.
The news sees them slip below Brentford to 16th, just a few points above Luton in 18th.
Their next game is away against Chelsea next Monday night, by which time they might have dropped into the bottom three.