Everton’s Premier League points deduction is REDUCED after they appealed against their financial rule-break punishment… and now Toffees leapfrog TWO teams to move up to 15th in relegation fight

Everton have surpassed Nottingham Forest and Brentford in the Premier League and back into 15th place after the Premier League appeal committee reduced their 10-point deduction to six, giving them four back.

The Toffees were given 10 points for breaching spending rules in the period ending 2021-2022 after exceeding the £105m allowable losses by £19.5m.

But the club has insisted there are mitigating factors to take into account. This included the losses that were allowable, such as stadium costs, investment losses due to the Russian war and also Covid-related setbacks.

Everton immediately appealed the 10-point loss on the grounds of unfairness, saying the punishment was ‘disproportionate’. A three-judge appeals panel heard a three-day hearing in late January and earlier this month.

The Toffees were not allowed to present any new evidence at that hearing, but did take several legal steps, led by ‘superside’ Laurence Rabinowitz KC. a 10-point penalty imposed for violating financial regulations was reduced to six points after an appeal.

The reduction will see Everton skip two teams to 15th in the Premier League

Everton say they are ‘satisfied’ with the outcome and a club statement reads: ‘

While the Club is still processing the Appeals Committee’s decision, we are satisfied that our appeal has resulted in a reduction in the points penalty.

‘Everton can confirm that an appeals committee has concluded that the points deduction imposed by an independent Premier League committee in November will be reduced from ten to six points with immediate effect.

‘While the Club is still processing the Board of Appeal’s decision, we are satisfied that our appeal has resulted in a reduction in the points sanction.

‘We understand that the Appeals Committee has deemed the originally imposed 10 point deduction to be inappropriate when assessed against the available benchmarks of which the Club has notified the Committee, including its position under the relevant EFL Rules, and the 9-point deduction imposed under the Premier League’s own rules in the event of insolvency.

‘The Club is also extremely pleased with the decision of the Board of Appeal to overturn the Commission’s original conclusion that the Club did not act in the utmost good faith. That decision, together with the reduction of the points deduction, was an incredibly important point of principle for the Club on appeal. The Club therefore feels justified in its appeal.

The news should be gratefully received by manager Sean Dyche and owner Farhad Moshiri

‘Despite the decision of the Appeals Committee and the positive outcome, the Club remains fully committed to cooperating with the Premier League in relation to the ongoing proceedings initiated for the accounting period ending June 2023.

‘The club is still considering the wider implications of the decision and will have no further comment at this time, other than to thank our Fan Advisory Board and other fan groups throughout this process, and all Evertonians for their continued support. and patience.’

The Toffees held their appeal hearing before an independent panel earlier this month after the club described the initial 10-point penalty as ‘wholly disproportionate’.

The outcome of the appeal could also have a direct impact on a second PSR complaint faced by the club, which was filed on January 15. That complaint relates to an assessment period ending with the 2022-2023 season.

Under a new, accelerated process to address PSR breaches agreed by the top clubs last summer, an independent committee hearing on the second PSR complaint must be completed no later than 12 weeks after the complaint was filed, which would be early April.

The Premier League has released its own statement confirming the cut.

Before today’s decision, Everton were 17th in the Premier League with 21 points

The Toffees have now risen to 15th place, which is a big boost to their survival hopes

‘An independent appeals committee has concluded that the sanction for Everton FC’s breach of the Premier League’s profitability and sustainability rules, for the period ending the 2021/22 season, will be an immediate deduction of six points.

‘This follows the club’s appeal against an independent committee’s decision in November 2023 to impose a 10-point deduction for the club’s breach of the PSRs.

‘The appeal was heard over three days earlier this month by an appeal panel consisting of Sir Gary Hickinbottom (chairman), Daniel Alexander KC and Katherine Apps KC.

‘Everton FC appealed the sanction imposed on nine grounds, each relating to the sanction and not to the fact of the offence, which the club admitted.

‘Two of these nine grounds were accepted by the Board of Appeal, which replaced the original points deduction of ten instead of six.

‘This revised sanction has immediate effect and the Premier League table will be updated today to reflect this.’

Everton have had a tough season and their original withdrawal left them in the middle of a relegation fight

There was widespread anger among fans after the Premier League’s initial decision – which saw home supporters holding up ‘corrupt’ signs during matches

Everton said at the time of the deduction that they were ‘shocked and disappointed’ by the Premier League’s ruling, which plunged them into the relegation zone.

The responsible committee said that ‘Everton’s PSR calculation for the relevant period resulted in a loss of £124.5 million, as claimed by the Premier League, which exceeded the £105 million threshold allowed under the PSRs.’

The initial decision sparked an outpouring of anger from Everton fans, who protested against the Premier League and held up signs reading “corrupt” at home games.

Everton were fourteenth in the Premier League when the penalty took effect: eight points above the relegation zone.

Before the ruling, Everton sat in 18th place, one point behind safety, with Luton ahead of them.

The independent committee’s written statement of reasons stated that the club’s overspending was ‘the result of Everton irresponsibly taking the risk that things would turn out positively’.

The PSR breach was described as ‘serious’ and warranted ‘a significant penalty’.

Nottingham Forest were also referred to an independent committee for a PSR breach on January 15.