EPL: How and Why Everton FC got a 10 points deduction

Everton Football Club faced a setback on November 17 when it was revealed that they breached Premier League profit and sustainability regulations. This led to the deduction of 10 points from their overall 14-point gain so far in the current English Premier League season. Due to the reduction, the club has moved to 19th place in the table standings.

What caused the reduction?

The breach resulted from their accounts for the 2021-22 season, indicating combined losses exceeding the permitted limit by £19.5 million. These losses totalled £124.5 million, surpassing the allowed maximum of £105 million over three years.

Their initially reported losses were significantly lower at £87 million, but an independent commission found this figure underestimated the true value.

Everton attributed some of these losses to various factors like difficulties in player sales due to COVID-19, a terminated contract of a player arrested in 2021, and impacts on sponsorship deals from the conflict in Ukraine. However, the commission dismissed these explanations, citing mismanagement as the primary cause of the breach.

Everton plans to appeal the decision, expressing frustration at what they perceive as an unprecedented and disproportionate punishment. The severity of the penalty has even sparked debates in parliament. 

Although some analysts believe Everton dodged a bullet by not facing this deduction in the previous season’s relegation battle, the current campaign under new manager Sean Dyche offers hope for remaining matches to play in the Premier League.

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