An independent panel has handed Everton a two-point deduction on Monday for breaching the Premier League's profit and sustainability (PSR) rules, marking the second time the club has faced a points deduction this season. Premier League regulations state that a club can lose no more than £105 million ($132.54m) over a three-year period.
During a three-day hearing last month, the independent Commission considered evidence and arguments from the club regarding its admitted breach of £16.6 million, including potential mitigating factors such as the impact of its two successive PSR charges. Following this, the Commission decided on a two-point deduction as the appropriate sanction, effective immediately.
As a result of the points deduction, Everton has slipped one place in the Premier League table to 16th, now sitting two points above the relegation zone. The club has announced its intention to appeal the decision and has initiated preparations to do so, expressing concerns over the inconsistency of points deductions applied by different commissions.
Earlier in the season, Everton had already faced a points deduction for a previous PSR breach. Initially docked 10 points in November by an independent commission, the penalty was later reduced to six points upon appeal. In January, Everton and Nottingham Forest were both charged for a second breach, with Forest receiving a four-point deduction in March.
Forest's charge initially warranted a six-point penalty, which was mitigated to four points due to factors such as an early plea and meaningful cooperation with the investigation. Following their promotion at the end of the 2021-22 season, Forest set a record for the most transfers by a Premier League club in the summer window, completing 21 separate deals.
Manchester City has also been referred to an independent commission over more than 100 alleged breaches of finance rules since the club's acquisition by the Abu Dhabi-based City Football Group. Premier League chief executive Richard Masters confirmed that a hearing date has been set for City's case, although the specific date has not been disclosed.
