Everton’s 10-Point Deduction – Impact & Reactions, Nov 2023

Everton F.C. has been penalized with a 10-point reduction following a breach of the Premier League’s financial regulations. The league allows a maximum loss of £105 million over three years, but Everton exceeded this limit with losses totaling £124.5 million up to the 2021-22 season. This penalty, the most severe in the league’s history, places Everton in 19th position on the league table. The club has expressed its shock and disappointment, announcing plans to appeal the decision.

The Premier League’s investigation into Everton began in March but details of the alleged breach were not disclosed. The club has reported financial losses for five consecutive years, including a £44.7 million deficit for 2021-22. Everton admitted to violating the Profit and Sustainability Rules (PSR) for the period ending 2021-22, and the independent commission sided with the Premier League after a five-day hearing in October.

Everton challenged the commission’s decision, disputing the claim of acting in bad faith and questioning the severity of the sanction. They also plan to observe closely how the league handles other cases involving PSR breaches.

The points deduction adds to the uncertainty at Everton. Owner Farhad Moshiri agreed to sell a major stake in the club to 777 Partners, an American investment firm, and the club is also constructing a new stadium at Bramley-Moore Dock, slated to open in late 2024.

The commission justified the hefty points deduction, citing Everton’s overspending, mainly on player acquisitions, and failure to sell players as primary causes. The club finished 16th in 2021-22, resulting in a significant income loss.


Everton put forward six mitigating factors in their defense, including financial impacts due to the Covid-19 pandemic and the war in Ukraine, but these were largely dismissed by the commission.

This penalty marks a historic moment in Premier League history, with only two other clubs having faced point deductions previously. The sanction leaves Everton at the same level as the bottom team, with a significantly increased risk of relegation.

The case also raises questions about Manchester City’s ongoing financial breach charges and the potential implications for other clubs facing similar scrutiny, like Chelsea, over financial irregularities.

Notable figures in football, including Jamie Carragher and Gary Lineker, have commented on the situation, with Carragher calling the penalty excessive and Lineker noting its significance. Liverpool’s mayor, Steve Rotheram, also deemed the punishment “excessive and grossly unfair,” voicing support for Everton’s appeal.