Premier League punishes Everton with a 10-point deduction for breaching financial rule

Everton of the Premier League lost 10 points as a penalty for breaching the top English football league's profitability and sustainability rules, the league announced on Friday.

"An independent commission has imposed an immediate deduction of 10 points on Everton FC for a breach of the Premier League's profitability and sustainability rules (PSRs)," the Premier League said in a statement.

Everton have been facing losses for five straight years with a total of over 430 million pounds (about $535.7 million). The Premier League set a threshold of 105 million pounds (about $130.8 million) for the loss its club can suffer every season. An independent commission determined in October that the club's loss during the 2021-22 season reached 124.5 million pounds (about $155.1 million) and thus, came up with the 10-point deduction sanction.

Everton were 4-2-6 and in 14th place before the penalty took effect. After they were docked 10 points, the club fell to 19th with the same points of four as Burnley at the bottom. "The Toffees" are above only on goal difference.

"Everton Football Club is both shocked and disappointed by the ruling of the Premier League's commission," Everton said in a statement. "The club believes that the commission has imposed a wholly disproportionate and unjust sporting sanction. The club has already communicated its intention to appeal the decision to the Premier League. The appeal process will now commence and the club's case will be heard by an appeal board appointed pursuant to the Premier League's rules in due course."

Everton also stressed that they will "monitor with great interest the decisions made in any other cases concerning the Premier League's profit and sustainability rules." The Guardian newspaper reported that Manchester City have been charged with more than 100 breaches of Premier League rules over multiple years and Chelsea are being investigated for alleged financial wrongdoing between 2012 and 2019.

Everton became the first Premier League club to receive punishment for violating the profitability and sustainability rules. According to leading sports lawyer Catherine Forshaw, City and Chelsea may face much more severe penalties if they are found guilty.