Q&A: Why Everton are being docked points but Manchester City have not yet
Everton have been hit by a 10-point deduction for breaking the Premier League’s spending rules after an independent commission looking into their losses under Farhad Moshiri found them guilty.
It means Sean Dyche’s side dropped with immediate effect to second from bottom in the table, plunging them into the relegation mire.
Telegraph Sports explains what is going on.
What have Everton been punished for?
The Premier League charged Everton with a breach of rule W.82.1 regarding profit and sustainability rules. The measures are in place to prevent clubs gaining an unfair advantage or risking their financial security by spending well in excess of the revenues they generate. Premier League clubs are allowed losses of £105 million over a three-year period. After taking mitigation arguments into account, Everton’s losses over the time period amounted to £124.5 million. An independent commission found Everton guilty of the breach, imposing the immediate 10-point deduction.
What avenues are open for the club to appeal?
Everton immediately vowed to contact the Premier League appeal body. However, expectations of success are low. The Premier League pushed for the independent hearing and sought a bigger punishment so they are unlikely to be inclined to soften the penalty.
What was their defence, and why was it rejected?
Everton’s plea for mitigation involved listing the costs which arose due to loss of potential earnings due to Covid, loss of Russian-based sponsorship from Alisher Usmanov because of government sanctions after the invasion of Ukraine, and interest rate charges on loans for the new stadium. These costs reduced the losses published in the club’s accounts by £179.5 million over a three-year period, but not by enough to go below the £105 million threshold.
Why have they been punished but not Manchester City ?
Put simply, because of the depth, scale and complexity of the 115 charges against Manchester City when compared to the single charge against Everton. The Premier League say that logistically the City case is inevitably more time-consuming. Everton argue this is an unreasonable explanation and believe they opened themselves up to speedier and politically motivated punishment by being cooperative and compliant at a time when English football is under pressure to prove an independent regulator is unnecessary.
Could those who were relegated launch legal action themselves?
Theoretically, those relegated during the time period when Everton have been found guilty of a breach could investigate legal avenues due to loss of earnings having been relegated from the Premier League. Leeds United and Burnley have indicated previously they were open to the possibility. However, all Premier League clubs signed up to the rules of self-regulation when they were in the top flight. The Premier League will hope today’s judgement satisfies internal and external parties that they have the power and desire to penalise wrong-doing.
