Everton have appealed against the decision to dock them 10 Premier League points for financial rule breaches.
Everton received the most significant penalty in Premier League history from an independent commission.
The team has officially filed its appeal with the Premier League’s judicial panel, leading to the appointment of an appeal board to review the case. Despite acknowledging the breach, the club expressed being “shocked and disappointed” by the harshness of the imposed penalty.
The appeal process is scheduled to be completed before the conclusion of this season.
“Everton Football Club has today lodged with the chair of the Premier League’s judicial panel its appeal of the decision by a Premier League commission to impose a 10-point deduction on the club,” Everton said.
According to reports, the club has not been informed about the methodology behind the independent commission’s decision to impose a 10-point penalty. They perceive a sporting punishment for financial rule breaches as unfair.
The appeal will be presented to a panel tasked with reviewing the commission’s ruling, evaluating the process and determining the fairness of the issued penalty in its opinion.
As a result of the points deduction, Everton plummeted from 14th to 19th place in the Premier League table.
Before and during Sunday’s 3-0 defeat against Manchester United, numerous Everton supporters staged protests against the Premier League’s decision, drawing in thousands of participants.
Additionally, several local politicians, such as Liverpool Mayor Steve Rotheram and Greater Manchester Mayor Andy Burnham (an Everton season ticket-holder), have voiced their concerns.
Why were Everton deducted 10 points?
The independent commission determined that Everton’s losses for the 2021-22 period totaled £124.5 million, surpassing the permitted limit of £105 million over three years for English top-flight clubs.
Everton contended that interest payments related to financing the construction of their new £760 million stadium at Bramley Moore Dock should be considered “add backs” for profit and sustainability calculations in the 2021-22 financial year.
However, the commission disagreed and rejected the club’s assertion of mitigating factors. These factors included adherence to the Premier League process over the past two years, the impact of the Russia-Ukraine war leading to the loss of the lucrative USM sponsorship, and the repercussions of the Covid pandemic on the transfer market.
Everton could encounter additional financial challenges as compensation claims from Burnley, Leeds, Nottingham Forest, Leicester, and Southampton are potentially looming. The possibility stems from a May ruling by David Phillips KC, where he expressed being “satisfied” that these clubs have a legitimate case.
Four of the mentioned clubs—Burnley, Leeds, Leicester, and Southampton—have faced relegation in the past two seasons, although Burnley has since returned to the top flight.
Clubs have a 28-day window from the date of this month’s ruling to determine whether they intend to pursue a compensation claim.