Western Daily Press (Saturday)
Ten-point penalty leaves Toffees in sticky situation
EVERTON have been hit with an unprecedented ten-point penalty after being found to have “taken chances” with the Premier League’s financial rules.
An independent commission found the club’s desire to improve on-pitch performances had resulted in them acting “irresponsibly” and exceeding permitted losses under the League’s profitability and sustainability rules (PSR).
The points deduction drops the Toffees to 19th in the table and leaves major question marks over whether a sale of the club by current owner Farhad Moshiri to a US investment firm, 777 Partners, will proceed.
The club immediately indicated their intention to appeal against the sanction. It is understood the appeal will be heard during the course of the current season. Everton could also face compensation claims against them over the case.
The Premier League published a commission judgement from May which granted five clubs – Leeds, Nottingham Forest, Southampton, Leicester and Burnley – 28 days from Friday to inform the commission of intentions to pursue compensation.
None of those clubs have so far commented on this matter.
The Premier League’s PSR permit losses of £105 million over a threeyear period. Everton’s losses up to 2021-22 were found to be £124.5m, exceeding the limit by £19.5m even accounting for allowances made for the Covid-19 pandemic.
The club put forward various items they felt should be excluded from the PSR calculation, including interest costs related to the construction of their new stadium at Bramley-Moore Dock, the portion of the club’s transfer levy related to their youth development and the £10m lost on the club’s decision not to seek damages against a player whose contract was terminated in 2021.
Everton also argued that a depressed summer transfer market in 2020 owing to Covid-19 reduced the revenue they would have earned from player sales. They also said they had lost out on a £200m stadium naming rights deal with USM as a result of Russia’s invasion of Ukraine and the subsequent sanctions imposed by the British Government. USM is a conglomerate whose single largest stakeholder is Russian billionaire Alisher Usmanov.
However, the commission said: “The cause of Everton’s difficulties was the fact that it overspent (largely on its purchase of new players and its inability to sell other players), and because it finished lower in the League than it had projected.”