The Premier League demand a 12-point deduction as the maximum punishment if Everton are found guilty of FFP breach, according to reports.
The Telegraph has discovered that the Toffees are facing the threat of the points deduction over its case against them for breaching profit and sustainability rules.
John Percy adds that the final decision is still to be made by an independent commission later this year, with Everton maintaining they have complied with the rules.
Premier League demands 12-point deduction as maximum punishment if Everton are found guilty of breaching financial rules. Important to note that final decision will be made by an independent commission. Everton maintain they have complied with the rules https://t.co/XfNEBwSxMP
— John Percy (@JPercyTelegraph) October 25, 2023
This could put the club are serious risk of going down, should they fall into another relegation battle this season, and find themselves currently sitting 16th in the table and just three points off the Premier League drop zone at the time of writing.
Everton’s case is currently being heard by an independent commission, after they recorded financial losses of £371.8million over a three-year period, but the club stress they have complied with the rules and insist they will “robustly defend” their position, and argue that exemptions, including those related to the Covid pandemic, will clear them of any wrongdoing.
Everton recorded financial losses of £371.8million over a period of three years. The Premier League only permit £105million.
They could face other sanctions, with a fine and/or a transfer embargo also a possibility, but it’s the Premier League who are recommending it to be a that of a points deduction.
This is also potentially bad news for Man City, the current holders, as in February, they were charged with breaching 115 regulations, the spreads across 14 seasons from 2009/10 to 2022/23.
Everton overspent under owner Farhad Moshiri, with The Telegraph confirming that over the past five years of accounts the club revealed losses of £44.7million in 2022, £121.3million in 2021, £139.9 million in 2020, £111.8million in 2019 and £13.1million in 2018.
The alleged breach was first announced in March by the Premier League, and has been their only public statement on the case so far.
The only time the Premier League have brought up the alleged breach was back in March 2023, in which they said: “The proceedings before the commission will, in accordance with Premier League Rule W.82, be confidential and heard in private.
“Under Premier League Rule W.82.2, the Commission’s final award will be published on the Premier League’s website. The League will be making no further comment until that time.”
Everton are in discussions with 777 Partners, an American private investment company based in Miami, with Moshiri looking to sell his 94% stake, agreeing a £550million deal.
Everton’s proposed takeover by 777 Partners is proceeding as planned, confirming all documents requested by the Financial Control Authority in relation to the purchase of the Club have been submitted and that they haven’t run into problems.
It was claimed that the group missed a deadline set by the Financial Conduct Authority to provide up-to-date financial records.
A source familiar with the sale process said via talkSPORT: “Without the correct financial information it is hard to work out where the money is coming from. I’d imagine that is the basis of the FCA issue.”
Without approval from the FCA, 777 Partners will not pass the Premier League‘s recently strengthened owners and directors test.
Unless those documents are provided, the government backed regulator will not approve the sale.
“We have submitted all relevant documentation to the FCA in line with their requests and indicative timings,” a spokesperson for 777 Partners said.
“As we have previously stated, the regulatory processes in relation to the proposed acquisition of Everton FC need to be allowed the proper time and space to run their course in private, and so we will not be commenting further.”
That takeover is still being ratified by the Premier League, Football Association and Financial Conduct Authority, and may could even not be completed until early next year, with any punishment from the case resulting in further delays.
Here’s what fans on social media had to say as the Premier League demand a 12-point deduction if Everton are found guilty of FFP breach…
@themightyi21: Can think of 115 reasons why Everton would and should appeal any ruling given certain clubs are able to kick their can of charges down a seemingly never ending road
@drewwalsh32: With the way it’s looking, I still think Everton will avoid relegation even with -12 points I think you will need max 28 pts to stay up this season the way it’s looking
@jack_attak5000: Why are they trying to influence the independent commission?
@ryapiece84: We’ll still finish bottom 🤣 #sufc
@robbietaylor_86: Premier League recommending it because they want to avoid the regulator so need to be able to be seen as enforcing the rules. Go after little old Everton, not City with their 115 charges though. Be a one-way ticket to the Championship with a minus 12.
@brianmoogan46: If that’s the Case Man City must be well and truly fucked if we’ve only got one case to answer for and they’ve got 115 to answer for. Can’t wait to see the punishment they’ll get given 😏
@DarrenSmithTWIF: That would be helpful. Presumably though they will delay the decision until a couple of games from the end of the season and commission will say a points deduction is just but it is “unfair” to deduct points that late so here is a fine of 1 weeks salary of your top earner 🤷♂️
@ToonTom: They’ll still stay up. They’ll never ever go
@james_flynn: Surprised 12 points is the “maximum” suggested punishment. If the PL really wanted to appear tough then 12 should be a minimum.
@Owens_EFC: so then theyve got to send man city down several divisions
@LeeNoble20: The Premier League seeking a points deduction. Ok, that’s a precedent set. Let’s see what the outcome of the investigation into Man City is?