In November 2023, Everton Football Club were issued with a 10-point deduction by the Premier League for breaking profit and sustainability rules. The Liverpool club’s punishment is the heaviest in the history of English top flight football.
Since Sunderland were docked two points for fielding an unregistered player back in the 1890/91 season, four other English clubs have received points deductions. In 1990/91, Arsenal (two points) and Manchester United (one point) were docked for an on-the-pitch brawl. In 1996/97, Middlesbrough were docked three points for failing to field a team at Blackburn due to illness in their squad. In 2009/10, Portsmouth were docked nine points when they went into administration.
Everton’s punishment was decided by an independent judicial commission appointed by the Premier League. It ruled that the club had lost £119.5 million over a three-year period, with the maximum loss allowable being £105 million.
Before the 10-point deduction, Everton had 14 points and were comfortably above the relegation zone. They admit the breach but consider the punishment disproportionate to the crime. A decision regarding Everton’s subsequent appeal will be reached before the end of the current season.
The commission can also award compensation to other clubs who feel they lost out due to the breaches. Everton’s relegation rivals in the past two seasons - Leeds, Southampton, Leicester and Burnley – may decide to sue Everton and seek compensation.
Another concern for Everton is further deductions if they breach the rules again. Premier League clubs have until the end of the year to publish their 2022/23 accounts. If Everton’s losses exceed the £105 million limit again, then there could be another points penalty.
Everton’s unprecedented punishment for breaking both profit and financial rules means European champions Manchester City face a nervous wait. In February 2023, Man City were charged by the Premier League with 115 breaches of financial fair play rules between 2008 and 2019. The club deny the charges.
Allegedly, City didn’t provide accurate information relating to their financial accounts and did not comply with European football governing body UEFA’s financial fair play rules over a five-year period.
In February 2020, Man City were banned by UEFA from European competition for two seasons and fined €30 million. The club took their case to the Court of Arbitration for Sport (CAS) and the ban was overturned and the fine reduced to €10 million. At the hearing, the CAS found most of the breaches alleged were not established or were time-barred, meaning they happened too long ago for UEFA to do anything about them. However, English Premier League rules do not include a time bar.
The independent commission currently investigating City will do so in private, so unless there are leaks, the first anyone will know of its conclusions will be when they are eventually published. Another club, Chelsea, are also under investigation and could be referred to the independent commission. Everton will be watching the outcomes with great interest.