Everton have been hit with an unprecedented 10-point deduction after being found guilty of breaking the Premier League’s financial rules.
The punishment will be applied immediately, pending appeal, and leaves Everton languishing in 19th place on just 4 points after 12 matches this season.
It represents the harshest sporting sanction in Premier League history and casts major doubt on Everton’s hopes of avoiding relegation.
Everton breached the league’s Profitability and Sustainability regulations which state clubs cannot lose more than £105 million over a three-year period.
The Toffees recorded losses of £124.5 million between 2019-20 and 2021-22 through overspending on transfers and failure to reduce costs.
Everton had tried to use accounting loopholes to cover up the extent of their losses but a Premier League commission heavily criticized the club’s financial mismanagement.
“The position that Everton finds itself in is of its own making,” the commission statement read.
Everton spent big money on players in an attempt to break into the top six but their signings flopped and they finished 16th last season instead of their projected 6th place.
The commission agreed with the Premier League that only a sporting sanction in the form of a points deduction would suffice.
“A financial penalty for a club that enjoys the support of a wealthy owner is not a sufficient penalty,” the commission said.
Everton expressed their “shock and disappointment” at the ruling and intend to appeal what they called an “unjust sporting sanction.”
But manager Sean Dyche faces a huge battle to keep Everton up after the devastating blow. The Toffees are now rooted to the bottom of the table and eight points from safety after the points penalty.
With strengthening in the January transfer window set to be restricted by Financial Fair Play, Dyche will have to galvanize his squad to pull off another great escape.
Everton’s penalty is the most severe sporting sanction in Premier League history. They also spark all sorts of implications for Manchester City, who have been charged with over 100 breaches of similar rules, as well as Chelsea who reportedly secretly bypassed FFP under Roman Abramovich’s tenure in charge of the club