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BREAKING: Premier League Deducts 10 Points From Everton For Breaching Financial Rules
The English Premier League has deducted ten points from Everton for breaching the Premier League’s spending rules.
An independent commission set up to examine the club’s losses during the era of Farhad Moshiri has found them guilty.
The decision of the Premier League has seen Sean Dyche’s side drop into the bottom three of the Premier League with immediate effect, second from bottom.
Everton has vowed to appeal to the Premier League board. Club officials are shocked and bewildered that their mitigation was rejected.
The commission brought the case for breaking profit and sustainability rules against Everton in March 2022 after they recorded financial losses of £304 million over three years, well over the permitted amount of £105 million set out by the Premier League.
Everton argued there were mitigating factors in these losses, citing stadium expenses, the impact of the war in Ukraine, which affected their sponsorship deal with USM, and the loss of value in players due to the COVID-19 pandemic.
One area of particular contention regarded the interest charges on the stadium’s cost. Prior to 2022, the rate hikes were permissible. That changed in the last set of accounts and contributed to the latest breach.
Everton also cited the loss of potential earnings from one high-profile and saleable player due to extraordinary and unforeseeable circumstances. That cost the club at least £20 million.
Having complied with the Premier League in consecutive years, Everton feels they have been treated harshly – especially compared to the Manchester City case, which is dragging on despite 114 more charges and accusations of a far less transparent process.
Everton’s financial difficulties are well-documented following a period of overspending by Moshiri. Over the past five years of accounts, the club has announced losses of £44.7 million in 2022, £121.3 million in 2021, £139.9 million in 2020, £111.8 million in 2019, and £13.1 million in 2018.
Moshiri is in the process of selling the club to Miami-based investment company 777 Partners. The club’s price will depend on Everton’s Premier League status, which is now under serious threat despite a promising period on-field led by Dyche.
The Premier League and Financial Conduct Authority are currently ratifying that takeover.