Everton hit with two-point deduction over second breach of financial rules

Everton have been dragged closer to a first top-flight relegation in 73 years after being deducted two points for breaching Premier League profitability and sustainability rules (PSR) up to 2023.

It is the financially troubled club’s second PSR-related points deduction of the season and leaves Sean Dyche’s team two points above the relegation zone with seven matches remaining.

An independent commission found Everton guilty of breaching PSR by £16.6m for the three-year period ending June 2023 and imposed the sanction with immediate effect.

The club were docked a record 10 points in November for a £19.5m overspend in the four-year period up to 2022 – two year’s figures were taken on aggregate due to the Covid pandemic – although that was reduced to six points on appeal.

Everton, who intend to appeal against the second punishment, claimed they were suffering double jeopardy with the second charge, as two of the three years involved formed part of their first breach. 

Unlike the English Football League, the Premier League does not have guidelines for dealing with financial periods already subjected to punishment.

The club also believes the £105m threshold for losses over a three-year period is outdated and has not kept up with inflation in wages and transfer fees in football over the past 10 years.

The Premier League plans to change the rules in August. That may come too late to preserve Everton’s proud top-flight status.

Everton said in a statement: “While the club’s position has been that no further sanction was appropriate, the club is pleased to see that the commission has given credit to the majority of the issues raised by the club, including the concept of double punishment, the significant mitigating circumstances