Everton face 12-point deduction over financial rules violations

Everton are in danger of a 12-point deduction following an investigation into alleged financial rule breaches by the Premier League club. According to The Daily Telegraph, Premier League authorities have enlisted an independent commission to consider imposing this severe penalty, which would mark the largest points deduction in the competition’s history.

Should this deduction be enforced, Everton would find themselves with a dismal minus-five points, placing them at the bottom of this season’s league table. Presently, Sean Dyche’s side is in 16th place with just seven points, having lost six out of their first nine games.

The Premier League initiated an inquiry into Everton back in March over an alleged violation of its profitability and sustainability rules spanning until the 2021-22 season. Top-tier clubs are allowed to incur a maximum loss of £105 million ($127 million) over a three-year period or face punitive measures.

Everton released a statement confirming the referral, strongly contesting the non-compliance allegations. The club, in conjunction with an independent team of experts, expresses full confidence in its compliance with all financial regulations.

“Everton is prepared to robustly defend its position to the commission. The club has, over several years, provided information to the Premier League in an open and transparent manner and has consciously chosen to act with the utmost good faith at all times.”

Over the past five years, Everton have reported annual losses exceeding £430 million in total during this period.

The club are currently the subject of a takeover bid by American private investment firm 777 Partners, which recently denied a report by The New York Times claiming that the bid had stalled due to a failure to provide information to the Financial Conduct Authority.