Everton face massive 12-point deduction for breaching FFP rules

Everton ensured Premier League safety on the last day of the 2022-23 season

The Premier League has recommended that Everton face a 12-point deduction in its case against them for breaching profit and sustainability rules.

Everton are facing the threat of severe sanctions if they lose their fight against allegedly breaking the Premier League’s financial regulations, with a decision due later this year.

The Toffees have struggled in the last two seasons and this 12-point reduction is a massive punishment for such a club. Such a sanction would put them at grave risk of going down, given the team’s relegation battles in recent seasons and precarious current position of 16th, three points off the relegation zone.

Everton’s case is currently being heard by an independent commission after they recorded financial losses of £304 million over a three-year period, which is well over the permitted amount of £105 million set out by the Premier League.

Everton have stressed they have complied with the rules and insist they will “robustly defend” their position, arguing that exemptions, including those related to the coronavirus crisis, will clear them of any wrongdoing.

Everton are facing a number of potential other sanctions, including a fine and/or a transfer embargo, but the recommended punishment by the Premier League is understood to be significant.

In February, champions Manchester City were charged with breaching 115 regulations over 14 seasons from 2009-10 to last season.

Everton’s financial concerns have arisen after a period of overspending under owner Farhad Moshiri – over the past five years of accounts the club has announced losses of £44.7 million in 2022, £121.3 million in 2021, £139.9 million in 2020, £111.8 million in 2019 and £13.1 million in 2018.

If found guilty, the maximum punishment Everton will face is a huge 12-point deduction. Based on the current table, that would leave them bottom on -5 points. Such a punishment would've been enough to relegate them in each of the last two seasons.