Everton has climbed above Nottingham Forest and Brentford in the Premier League standings, reclaiming the 15th position after the Premier League’s appeals board reduced their 10-point deduction to six, thus restoring four points.
The deduction was initially imposed due to Everton’s violation of spending regulations during the period ending in 2021–22, exceeding the permitted £105 million in losses by £19.5 million.
The club argued that they had mitigating circumstances that warranted consideration.
These included expenses deemed permissible, such as stadium costs, investment losses due to the Russian war, and pandemic-related setbacks.
Following the appeal, Everton contended that the punishment was disproportionate and immediately lodged an appeal.
A three-man panel presided over a three-day hearing in late January and earlier this month.
During the hearing, Everton was not permitted to present new evidence but made several legal arguments, led by prominent lawyer Laurence Rabinowitz KC.
As a result of the appeal, the original 10-point penalty for financial rule breaches has been reduced to six points.
Everton say they are ’satisfied’ with the outcome and a club statement read: ‘
While the club is still digesting the Appeal Board’s decision, we are satisfied our appeal has resulted in a reduction in the points sanction.
‘Everton can confirm that an Appeal Board has concluded that the points deduction imposed by an independent Premier League Commission in November will be reduced from 10 points to six points, with immediate effect.
‘While the club is still digesting the Appeal Board’s decision, we are satisfied our appeal has resulted in a reduction in the points sanction.
‘We understand the Appeal Board considered the 10-point deduction originally imposed to be inappropriate when assessed against the available benchmarks of which the Club made the Commission aware, including the position under the relevant EFL regulations, and the 9-point deduction that is imposed under the Premier League’s own rules in the event of insolvency.
‘The Club is also particularly pleased with the Appeal Board’s decision to overturn the original Commission’s finding that the Club failed to act in utmost good faith. That decision, along with reducing the points deduction, was an incredibly important point of principle for the Club on appeal. The Club, therefore, feels vindicated in pursuing its appeal.
‘Notwithstanding the Appeal Board’s decision, and the positive outcome, the Club remains fully committed to cooperating with the Premier League in respect of the ongoing proceedings brought for the accounting period ending in June 2023.
‘The Club is still considering the wider implications of the decision and will make no further comment at this time other than to place on record its thanks to our Fan Advisory Board and other fan groups throughout this process, and to all Evertonians for their ongoing support and patience.’
The Toffees made their the appeal hearing before an independent commission earlier this month after the club described the initial 10-point penalty as ‘wholly disproportionate’.
The outcome of the appeal may also have a direct impact on a second PSR complaint the club is facing, which was laid on January 15. That complaint covers an assessment period that ends with the 2022-23 season.
Under a new expedited process to deal with PSR breaches that was agreed upon by top-flight clubs last summer, an independent commission hearing into the second PSR complaint must conclude no later than 12 weeks after the complaint was laid, which would be early April.