Everton risk ‘administration’ and ‘further nine-point penalty’ if a number of clubs successfully ‘sue for the Merseyside outfit for £300m’.
Burnley, Leeds United, Leicester City and potentially Southampton are reportedly looking at plans to bring a compensation claim against Everton, which would be heard by another three-person panel appointed by the Premier League before the end of the season.
Everton could end up being forced into administration and given another nine-point penalty if a second independent commission rules that other clubs should be compensated for their spending breaches.
It was confirmed on Friday that Everton were given an immediate 10 point deduction after they were found to have lost £124.5m over a three-year period up until the end of the 2021/22 season.
Everton face administration and further nine point deduction if independent commission rules relegated clubs should be compensated for their spending breach.
— Matt Hughes (@MattHughesDM) November 18, 2023
At the same time as publishing the important Everton points deduction decision the PL also published a short decision following a hearing that took place back in early May in which I acted for 5 other clubs that has until now remained confidential: https://t.co/nmGUXdg4VI
— Nick De Marco KC (@nickdemarco_) November 18, 2023
They were given the sanction by an independent commission as Premier League rules permit clubs from losing more than £105m over three years.
The report claimed: ‘Leeds and Leicester were relegated to the Championship and Burnley have leant their support as they remain convinced that Everton’s spending breached financial rules the previous season when they were relegated.’
The Daily Mail, the day after news of the points deduction, claims ‘Everton face being forced into administration and given another nine-point penalty that would almost certainly relegate them if a second independent commission rules that other clubs should be compensated for their spending breaches’. They explain.
‘Everton’s prospective buyers 777Partners have committed to providing around £20million-a-month to help with the club’s running costs whilst the Premier League are assessing their takeover bid, but Mail Sport has learned that they would not be willing to pay a compensation bill that could run into tens of millions of pounds.
‘The deal agreed by Farhad Moshiri and 777 in September contains clauses stipulating that the sale price will be reduced significantly if Everton are instructed to pay compensation or relegated from the Premier League.
‘Everton’s current regime lack the funds to settle a significant compensation bill, which would leave the club facing administration and the automatic nine-point penalty introduced by the Premier League in 2004.’
Other reports however claim that Everton expect their 10-point deduction to be significantly reduced after their appeal’.
As per Football Insider: ‘Everton sources with knowledge of the situation have said the club are confident the 10-point punishment, which comes into immediate effect, will be “significantly reduced”.
‘The expectation is that the deduction will be potentially halved or more, to around the “three to six points” mark.
‘That would be a huge boost for Everton after they were hit with the biggest sporting sanction in Premier League history for breaching the financial rules and dropped immediately to 19th in the table.’
Here’s how fans reacted as Everton risk ‘administration’ and a ‘further nine-point penalty’ if clubs successfully ‘sue for £300m’…
@NotSoLocalHero: Consider me a Burnley, Leicester and Leeds fan if they pull this off.
@Joe081223: Tbf the points deductions are hilarious, administration not so much
@Burnleyboys1882: No fault but their own 👍
@ForestIsMagic: I feel bad for Everton, why aren’t you doing this for Chelsea or Man City @premierleague, Corrupt bastards 🤡
@BigRossM28: The league is finally eating itself towards civil war and I absolutely love to see it
@Red_Scouser1892: Imagine 🤣
@mickgent: They should have had the deduction 2 years ago so they deserve everything they get 👌🏻
@kianlufc: Gets even funnier this
@JamieDillon8_: Rules are rules.
@Stuart_Linnell: Much as many don’t like the idea of a football regulator what’s happening at Everton shows why it’s necessary. Points deduction for overspending, administration threatened, possibly sued by recently relegated clubs. And the Chelsea & Man C cases still to be settled. What a mess.
@DarrenSmithTWIF: This is potentially more serious to Everton than the points deduction. We all know the huge cost of relegation so if these 5 clubs have a potential claim for compensation and given Everton’s poor finances not sure how they would meet these obligations.
@NCSL1892: It appears the #Everton case is only just starting. The judge granting clubs the right to seek compensation will open a floodgate & smash the club as it currently stands. This is the beginning of what seems like big claims & then it seems #CFC & #MCFC next 🤷🏼♂️🙈 #NUFC
@Magpie24_7: So the teams that have been narrowly relegated when Everton where proved to have failed FFP are wanting a financial settlement. Fair play, only right. This would be a massive compensation figure when you work out what relegation has cost each one of them clubs. This looks far from over and could get MUCH worse for the Scouse Mackems! Imagine the bill, imagine the FFP fail again and that’s if they’ve enough money in the bank! It’s a mess at the Premier League, AGAIN! #NUFC #NUFCFans #Newcastle
@MickyC_NUFC: NDM confirming he’s lead for the clubs going for compensation for Everton’s accounts being cooked. Sources expect him to win, and the Toffees will be given another 9 point deduction for entering administration through not being able to pay the below clubs 100m a piece #EFC 🔵