Everton lodge appeal against two-point deduction for second PSR rule breach

Published on Apr, 15 2024

Everton have officially lodged an appeal against their two-point deduction for a second breach of the Premier League's profit and sustainability rules (PSR).

The Toffees, who were docked six points earlier this season for breaking PSR rules in the assessment period up to the 2021-22 season, were handed another penalty last week for the three-year cycle to 2022-23 after admitting a breach of £16.6m.

The appeal hearing over the second points deduction is expected to take place in the next couple of weeks.

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Everton found out in February that their appeal against the punishment dished out in November for their first PSR breach had been reduced from 10 points to six.

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Everton appeal against second Premier League points deduction

The appeal board rejected seven grounds for mitigation put forward by the club, but did find the original commission made legal errors.

In this month's points deduction, according to the written reasons published by the independent commission handling the case, Everton breached their allowed spending of a £105m loss over three seasons by £16.6m. The Premier League and the commission initially wanted to impose a five-point deduction on the club, but it was reduced to two on mitigating factors.

Everton - who argued for a one-point deduction to be deferred until next season - have now appealed. A decision on that must be heard by May 25, which is the week after the Premier League season ends.

On this edition of Back Pages Tonight, the Telegraph's Jason Burt says the "rules aren't working" after Everton received a further two-point deduction

Last month fellow Premier League strugglers Nottingham Forest were punished for their own PSR breach, leading them to be docked four points.

The Premier League said Forest admitted breaching those rules by £34.5m above their permitted threshold of £61m.

Forest, who are just a point above the relegation zone, are awaiting the results of their appeal.

Points deductions here to stay for PL financial breaches

Clubs who break the Premier League's financial rules can still expect to be given significant points deductions in the future, despite a proposal to replace points penalties with a fine.

At the latest shareholders meeting of Premier League clubs last Thursday, the future of squad cost controls was one of a number of key issues on the agenda.

And in principle, they agreed to introduce new financial rules. It would likely mean clubs will be limited to spending 85 per cent of their revenue on transfers, wages and agents' fees.

Clubs voted to progress with new squad cost ratio rules to replace current Profitability and Sustainability Rules (PSR). Two votes were on proposed new rules, and one was unanimous. A final vote on whether to adopt new rules will be taken at the Premier League's AGM in June.

PSR rules will still be in place for next season. If new rules are adopted at the AGM, there would be a transition period next season where the new rules would shadow current PSR rules.

But perhaps crucially, the sanction of points deductions will remain for next season and will also remain as part of the new squad cost ratio rules.

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