Everton has been docked ten points immediately after being judged to have violated the Premier League’s profit and sustainability regulations.
The punishment is the most severe in the competition’s history, and it drops Everton to 19th on the table with a new total of four points.
The club was “both shocked and disappointed” by the “wholly disproportionate and unjust” decision.
Everton has stated that it will appeal the ruling.
The Premier League sent Everton to an independent panel in March but did not specify the nature of the alleged violation.
Everton reported financial losses for the fifth consecutive year in March, following a £44.7 million deficit in 2021–22.
Premier League clubs are allowed to lose £105 million over a three-year period, and Everton admitted to breaking the profit and sustainability regulations (PSR) for the fiscal year ending 2021–22.
Following a five-day hearing in October, the commission ruled in favour of the Premier League, determining that Everton’s losses during that time period were £124.5 million.
In a statement, Everton said: “The club does not recognize the finding that it failed to act with the utmost good faith, and it does not understand this to have been an allegation made by the Premier League during the course of proceedings.
“Both the harshness and severity of the sanction imposed by the commission are neither a fair nor a reasonable reflection of the evidence submitted.
“The club will also monitor with great interest the decisions made in any other cases concerning the Premier League’s profit and sustainability rules.”
Only two other clubs in Premier League history have received a point deduction.
During the 1996–97 season, Middlesbrough were docked three points for failing to fulfil a fixture against Blackburn, while Portsmouth were docked nine points after falling into administration.
Following those sanctions, neither club was able to avoid relegation.
After 12 games, the Toffees are equal with basement club Burnley on four points and two points away from safety.
Sean Dyche’s team finished last season two points above the relegation zone, 14th in the table, and eight points clear of the bottom three.
Manchester City is the only other club that has been penalized by the Premier League for financial violations after being sent to an independent panel for more than 100 suspected rule violations between 2009 and 2018.
Triple victors City was charged before Everton in February, and the investigation is still ongoing.
Meanwhile, Chelsea may face additional scrutiny from football officials in light of reports of payments linked to the club’s former owner, Roman Abramovich.
Chelsea was fined £8.6 million by UEFA in July for “submitting incomplete financial information” between 2012 and 2019 as part of a settlement for violating Financial Fair Play rules.
