Everton points deduction appeal: The key questions answered as Premier League club awaits outcome

February 20, 2024

Everton's appeal hearing has taken place but when will we know the outcome? Sky Sports answers the key questions over the club's 10-point deduction...

What happened and why?

Everton were deducted 10 points with immediate effect in November for a breach of the Premier League's Profit and Sustainability Rules.

The points deduction was the largest in Premier League history and plunged Sean Dyche's team into the relegation zone.

The league's rules say that over a three-year cycle, a club must not lose more than £105m. An independent commission determined that "Everton's PSR calculation for the relevant period resulted in a loss of £124.5m".

According to the Premier League, Everton admitted during a five-day hearing they were in breach of the rules.

Everton had 14 days to appeal against the decision.

What's happened since?

Everton said they were "shocked and disappointed" by the ruling and lodged an appeal against the points deduction in December.

"Both the harshness and severity of the sanction imposed are neither a fair nor a reasonable reflection of the evidence submitted," said the club.

When did the appeal hearing take place?

The club's appeal, headed up by Laurence Rabinowitz KC, was considered over three days from January 31 by a three-person independent appeals commission which included a different set of people from the original commission panel.

A final decision was expected to be announced by the middle of February and will arrive soon.

What was the club's argument at appeal?

Everton argued strongly there were clear mitigating circumstances for the breach and those were situations that were mainly beyond the club's control.

The loss of sponsorship money due to sanctions as a result of the Ukraine war and a change in how interest payments on the club's new stadium were calculated were all part of the club's defence.

The commission will consider Everton's argument that the original hearing did not give sufficient prominence to the mitigating circumstances, although another major part of the Everton case centres on the disproportionate nature of the punishment the original commission handed out.

Could there be further sanctions?

Everton, along with Nottingham Forest, have been charged with a further breach regarding the 2022/23 season which is expected to be heard following the appeal decision of their first charge and before the end of the current campaign.

While the two alleged breaches will be treated as completely separate offences, the decision of the independent commission could well have an impact on such cases going forward.

Dyche: Outcome needs to be sped up

Everton manager Sean Dyche on appeal decision:

"I don't know the dates, we're just waiting for the moment. For the good of football, it needs to be sped up. Not just for us, but all these cases.

"No one wants them to be dragged out, but whatever it's going to be - let's get on with it. At the end of the day, I can't do anything about it. It's not in my hands."

Carragher: Everton should get some points back

Sky Sports' Jamie Carragher speaking on Monday Night Football:

"I would expect some points to come back.

"The initial reaction from everybody in football when they saw the 10-point deduction was that it was harsh.

"Yes, Everton admitted a breach so there will be some sort of sanction. What should it be? That's never happened before so it's a grey area.

"The big thing for me is that Everton will get something back. I think it will be two to three points maximum."

PSR explained: What limits clubs spending more?

In the simplest terms, when every Premier League team tots up their annual accounts, they can have made a loss no greater than £105m across the previous three seasons.

Clubs can only lose £15m of their own money across those three years. So that is no more than £15m extra on outgoings like transfer fees, player wages and, in a lot of clubs' cases, paying off former managers compared to their income from TV payments, season tickets, selling players and so on.

The other £90m of any £105m must be guaranteed by their owners buying up shares, known as 'secure funding', and essentially means bankrolling the club.

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