Everton’s Premier League point deduction reduced – will it save them from relegation?

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Docked 8 points in total 

Everton have been deducted another two points for a further breach of the Premier League’s Profit and Sustainability rules (PSR) for the three seasons between 2020/21 and 2022/23. The decision plunges Everton from 15th to 16th place, as they now fall below Brentford, and sit just two points and two places above the relegation zone. According to the written reasons published by the independent commission covering the case, Everton breached their allowed spending of a £105 million (€122m) loss over three seasons by £16.6m (€19.3m). Originally the Premier League and the commission wanted to deduct Everton a further five points, but it was reduced to two points on mitigating factors. 

Everton’s original 10 point deduction for breaches of PSR from the Premier League between the 2018/19 and 2021/22 seasons was reduced back in February to six points, after an appeal board decided to reduce the punishment. Everton are one of only four Premier League teams to have been docked points – Middlesbrough were deducted three points in the 1996/97 season, Portsmouth were deducted nine back in 2010, and Nottingham Forest were deducted four points this season.

According to the rules, clubs can sustain losses of up to £105m in three years or potentially face penalties. The Premier League have said, “Ordinarily, a Club’s PSR Calculation is the aggregate of its Adjusted Earnings Before Tax over a three-year period. Following amendments made to the PSRs during COVID-19, the relevant figures for Seasons 2019/20 and 2020/21 are now averaged. In the present case, therefore, the relevant period included Season 2021/2022, the average Adjusted Earnings Before Tax for Seasons 2020/21 and 2019/20 and Season 2018/19.”

Everton FC statement: “While the club’s position has been that no further sanction was appropriate, the club is pleased to see that the commission has given credit to the majority of the issues raised by the club, including the concept of double punishment, the significant mitigating circumstances facing the club due to the war in Ukraine, and the high level of co-operation and early admission of the club’s breach.

“Everton remains committed to working collaboratively with the league on all matters relating to PSR but is extremely concerned by the inconsistency of different commissions in respect of points deductions applied.”

Everton’s spending between 2020/21 and 2022/23

Between the 2020/21 and 2022/23 seasons (the three seasons in question), when it just comes to transfers of players, Everton only spent €192.07m on new acquisitions, and registered a loss on players of just -€38.02m. During that period their highest transfers were for Alex Iwobi (€30.4m), Ben Godfrey (27.50m), and Allan (€24.60m). Everton made €154.05m from player departures during this period.

In the said time-frame, on players alone, 13 other clubs registered a higher loss on players. Chelsea topped the list, with a total loss of -€698.00m between 20/21 and 22/23. However, if we look at the wider period between the 2014/15 and 2020/21 seasons, Everton have the fourth highest total loss on players, registering a total of -€351.78m.

Can Everton stay up?

Everton’s survival hopes were massively dampened by today’s announcement, but their prospects still remain intact. Everton were in 15th with 29 points, before their second punishment was announced and they now sit precariously just two points above the drop zone. The Toffees 1-0 win against Burnley on Saturday (the club’s first win in 13 games) now essentially counted for nothing after today’s news. 

As aforementioned, only two clubs have had point deductions before Everton in the Premier League, and both were relegated. Portsmouth finished 20th in the 2009/10 season after having nine points docked. They actually would have been relegated even without the deduction, finishing with a meagre 19 points. Middlesbrough were also sent to the second division in 1997, but without their three point deduction would have survived.  

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