Everton’s initial 10-point deduction in the Premier League, which was imposed due to their violation of the profitability and sustainability rules, has been successfully appealed and reduced. This development has brought respite to the club, as they were previously facing the threat of relegation. As a result of the reduction, Everton’s points have been adjusted, placing them at 25 points and 15th position in the Premier League table. They now enjoy a five-point cushion above the relegation zone. Meanwhile, Luton Town finds themselves four points away from safety in 18th place, while both Burnley and Sheffield United face a considerable 11-point gap to overcome.
Despite the relief provided by the reduced points deduction, Everton still faces the possibility of receiving another deduction due to a second breach of the Premier League’s Profitability and Sustainability Rules (PSR) in January. Nottingham Forest is also among the clubs charged with a similar offense.
The PSR imposes limits on clubs, capping their losses at £105 million over a three-year period. While Everton’s financial accounts revealed losses amounting to £370 million between 2018 and 2021, not all of these losses are factored into the calculations.
Certain investments made in club infrastructure and academies are excluded from the PSR calculations. For instance, Newcastle United has reported losses of £155 million over the past three seasons, but only a portion of that, which is less than £105 million, is considered for PSR assessment.
Everton has expressed its dissatisfaction with the Premier League in response to the two charges related to the Profitability and Sustainability Rules (PSR).
In a statement, the club criticized the Premier League for lacking guidelines that prevent a club from being penalized for alleged breaches in financial periods that have already been subjected to punishment. This stands in contrast to other governing bodies such as the EFL. Everton highlighted that, due to the Premier League’s commitment to dealing with such matters “in-season,” they were compelled to submit a PSR calculation that is subject to change pending the appeal’s outcome.
The statement further emphasized that Everton is now required to defend against another Premier League complaint concerning the same financial periods for which the club has already been sanctioned, even before the appeal has been heard. Everton believes this situation arises from a clear deficiency in the Premier League’s rules.
The club assured its fans that it will continue to defend its position throughout the ongoing appeal process and any future commission, with the impact on supporters being taken into account.
Earlier this month, Premier League club shareholders convened to discuss potential modifications to the PSR system. One of the considerations on the table is a shift towards UEFA’s squad to cost ratio calculations.
