Crisis club Everton could potentially face a third points deduction as their legal woes around their Premier League profitability and sustainability breaches rumble on.
The Toffees were docked two points on Monday after an independent commission ruled that the club had overspent by £16.6million for the three-year period to 2022/23.
This follows a ten-point deduction that was later reduced to six on appeal earlier in the season for the three years up to 2021/22. The club have also stated their decision to appeal this second deduction.
Premier League rules state that a club can lose up to £105million over a three-year period.
The two point deductions have seen the Toffees drop to 16th in the Premier League table, just two points clear of the relegation zone.
However, the Toffees could yet face a third deduction as their troubles continue.
Why Everton could face a further deduction
This latest threat regards interest costs associated with the construction of the club’s new Bramley-Moore Dock stadium, as the Premier League believe that these costs related to the new ground should count as PSR losses.
Everton believe they should be excluded and have capitalised on them in their latest set of audited accounts.
When would any potential third deduction come?
The same independent commission that ruled on this most recent deduction will meet to rule on this issue at a later date. If it agrees with the Premier League’s stance, they could then issue a further punishment.
However, it is not expected to happen this season, as the commission have said that the issue cannot be dealt with using the expedited PSR process introduced this year.
This raises the prospect of calling the integrity of this season’s Premier League relegation battle into question, as a relegated side could potentially launch legal action, should Everton survive and then have what would have been decisive points deducted next season.
What did the commission say?
The commission addressed this matter in their written reasons for their latest deduction:
“It therefore remains to be determined whether Everton has exceeded the upper loss threshold by any further amount regarding the interest capitalised in FY21 [financial year 2021], FY22 and FY23. We accept that this defers the resolution of part of this dispute. The commission is acutely aware that there are many stakeholders – to name some: the PL, Everton, the Everton fans, all other Premier League clubs, the public – interested in the speedy determination of these disciplinary proceedings.
“Nevertheless, in fairness to the parties in these proceedings, the commission decided that the issues which remain cannot be dealt with in accordance with the timetable set out in the standard directions.”
These directions were introduced last summer and state that cases should be dealt with before a season ends.
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