Everton could suffer points deduction over Premier League financial rules

Premier League strugglers Everton could be in line for a points deduction due to huge anticipated financial losses, according to reports.

The news comes as the Toffees are battling the threat of relegation from the top tier of English football.

Sitting just one point above the relegation zone, the prospect of dropping out of the top flight is genuine for Everton. A Premier League club since its inception in 1992, the Toffees are looking to avoid a historic outcome.

Where has it all gone wrong for Everton? The appointment of former Liverpool boss Rafael Benitez at the beginning of the season didn’t go down well on Merseyside. The Spanish coach lasted just seven months before facing the sack.

His replacement hasn’t fared much better, with Frank Lampard winning just one of five league games in charge so far.

In turmoil on the pitch, Everton’s fortunes off it aren’t much better. Big spenders in the league for several years, it looks as if their transfer habits are about to catch up with them.

In addition, the Toffees are also splashing out on a new ground, with the Bramley-Moore Dock Stadium estimated to cost over £500 million.

With cash already tight, Everton recently faced a further financial blow. They received backlash for connections with Russian sponsor Alisher Usmanov. The club cut ties with their donor due to the ongoing Russian invasion of Ukraine, and they will lose £300 million of Usmanov’s investment over a 20-year period.

Everton facing potential points deduction in Premier League

There were fears this could be a problem for Everton, should they get relegated this season. However, new information from the Daily Mail suggests the club could also face a points deduction sooner rather than later, which would worsen their plight.

Read: Everton face financial threat if they get relegated from the Premier League

While they are yet to publish their accounts for the 2020/21 campaign, speculation around Everton’s financial situation continues to grow. The same report claims that the club are on the brink of breaking Premier League profit and sustainability rules. Posting losses of £260 million since 2017 means they are £155 million over the allotted amount for a three-year period.

The Premier League announced a deadline of the end of this month for all its clubs to announce their accounts. Should Everton break the profit and sustainability rules, they would become the first top-flight club to do so. It is claimed that, despite the Covid-19 pandemic changing the three year assessment period to four, the Toffees are still at risk of falling foul of the rules.

The Liverpool Echo has claimed that Everton are not concerned about a potential points deduction.

If it does happen, though, it wouldn’t be the first time an English club has been handed a points deduction in recent history.

Championship side Derby County started the current campaign on minus 21 points, with Wayne Rooney‘s side fighting for their lives in the second tier. Wigan Athletic and Bolton Wanderers have all begun previous seasons with points deductions. Meanwhile, Leeds United dropped drop down to League One due to their infamous spell in administration in 2006.

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