10/05/2024 52comments  |  Jump to last

Everton have announced that they no longer plan to appeal the sanction imposed by the Premier League for their second breach of Profitability and Sustainability Rules. 

The Blues were first docked 10 points last November for breaching the upper PSR threshold of £105M in unallowable losses over 4 years ending in the 2021-22 financial year, with that penalty reduced to 6 points following an appeal.

However, a subsequent independent commission addressing a PSR breach for losses over 3 years ending in 2022-23 recommended a further 4-point punishment, reduced to 2 points for "double jeopardy", and levied in the same season in March.

The Club's decision to withdraw its challenge to the second sanction follows the failure last week of Nottingham Forest's appeal, which came after the Toffees had secured sufficient points to ensure Premier League safety going into next season despite suffering a total of 8 points being deducted for two consecutive breaches of PSR. 

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Forest were deducted 4 points despite a larger breach of their threshold but an appeal board upheld the original ruling.

"Everton Football Club has withdrawn its appeal of the decision by a Premier League Independent Commission to impose a 2-point deduction on the Club for a breach of the Premier League's Profitability and Sustainability Rules for the accounting period ending in June 2023," an Everton statement read.

"A hearing, scheduled for later this month, will now not proceed, and the Club will conclude the 2023-24 Premier League season with the 2-point deduction remaining in place."

With their Premier League survival assured, Everton round off their season against already-relegated Sheffield United at Goodison Park on Saturday, before an away trip to title contenders Arsenal on the final day.


Reader Comments (52)

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Brent Stephens
1 Posted 10/05/2024 at 12:32:52
Apparently EFC have withdrawn their appeal against the 2-point deduction.
Brent Stephens
2 Posted 10/05/2024 at 12:35:12
Being reported by BBC and The Guardian.
Bernard Dooley
3 Posted 10/05/2024 at 12:44:10
So Everton have withdrawn their appeal against their 2-point deduction for the second PSR breach.
John Raftery
4 Posted 10/05/2024 at 12:45:04
Saves some legal fees.
Michael Kenrick
5 Posted 10/05/2024 at 12:50:56
Very sensible decision.

Don't poke the bear!

Les Callan
6 Posted 10/05/2024 at 12:51:43
I advocated this a couple of weeks ago. Makes sense.
James Marshall
7 Posted 10/05/2024 at 12:53:58
A touch of reparation with the league perhaps?

I'm glad, it doesn't serve us to keep going and have the panel turn it down ala Forest anyway.

Smart move.

Ian Jones
8 Posted 10/05/2024 at 12:55:14
I thought we had already appealed and a final decision by the Premier League was to be announced in the last week of the season. Must have got mixed up with so much going on.

The clue is in the appeal is withdrawn - got it!

Michael Kenrick
9 Posted 10/05/2024 at 13:00:28

We had appealed but the hearing has not taken place.

Now, it won't take place, saving time, money, effort and sweat on all sides.

Still leaves a certain matter pending that has not been mentioned further — the thorny issue of loan interest and stadium construction, which seems to have been kicked down the road…

John Chambers
10 Posted 10/05/2024 at 13:07:11
Hopefully somebody has been in touch with the league and done a deal that we withdraw the appeal and they agree not to penalise us next season over the £6.5M interest that is still to be resolved.
David Bromwell
11 Posted 10/05/2024 at 13:07:25
Wise and very sensible, let's try and move on.
Mark Taylor
12 Posted 10/05/2024 at 13:20:58
Pretty obvious thing to do now that we don't need the points so much.

It's actually a shame we can't organise an advance on points deductions for 2024-25 because, next season, I have a hunch the promoted clubs won't be quite so useless as this season's batch.

Ernie Baywood
13 Posted 10/05/2024 at 13:21:01
That's what I'm wondering, John.

Forest had a pointless appeal and it didn't cost them any more points. So there's no real downside.

There are points available to us on appeal and it could be worth a place (and therefore money) if we drop behind Brentford.

I don't think you take that off the table unless you're trading it for something.

Dave Cashen
14 Posted 10/05/2024 at 13:21:07

Back onside with the powers that be whilst subtly telling them to shove the points deduction up their arses.

Peter Quinn
15 Posted 10/05/2024 at 13:24:22
So our appeal is withdrawn, we still have the issue of the treatment of the interest on the stadium loans to be resolved, and meanwhile, over at Manchester City, we still do not even have a date for their commission.

Here is a brief summary of exactly what the 115 charges refer to:

54 charges relate to failing to provide accurate financial information between 2009-10 and 2017-18

14 charges relate to failing to provide accurate information on player and manager payments between 2009-10 and 2017-18

Five charges relate to failing to comply with Uefa's rules including FFP between 2013-14 and 2017-18

Seven charges relate to breaching the Premier League's Profit and Sustainability Rules (PSR) between 2015-16 and 2017-18

35 charges relate to failing to comply with the Premier League's investigations between December 2018 and February 2023

Some of these charges are self-explanatory. In essence it is alleged that Man City were driving money into the club through fictitious sponsorship packages, paying then-manager Roberto Mancini to act as a consultant to a club in Abu Dhabi, and giving players more money than was going through the accounts. These allegations have all been denied robustly by the club.

When you think what we have been through so far for two charges, how long is all this litigation likely to take before it is all concluded! What are the chances of it being settled in some sort of confidential deal? Only time will tell!

Neil Lawson
16 Posted 10/05/2024 at 13:24:46
If the primary reasons are that our legal advisers have made that recommendation based upon their assessment of our chances of success allied to the ongoing costs... then so be it.

If some sort of " behind the scenes" agreement has been struck to our advantage... then so be it. If the Club just couldn't be arsed, then so be it.

However, I would have preferred them to continue and to test the nonsense and inconsistencies that they have faced and to challenge the Premier League publicly for the good of all teams and supporters. The outcome remains more than just academic.

Rob Jones
17 Posted 10/05/2024 at 13:26:28
Delighted to read this. It was going to achieve nothing other than give the Premier League the chance to further muddy the waters.

We now have fractionally more certainty as to what's coming down the pike.

Frank Crewe
18 Posted 10/05/2024 at 13:29:22
Well we're safe from relegation so what's the point in dragging it on? Especially after Forest had their points deduction confirmed, no doubt our chances of winning were slim. Best put this whole fiasco behind us and move on.

Anew season beckons and that always brings renewed hope. Remember, if it hadn't been for the deductions, we could now be in the Top 10. So let's hope that improvement is built on next season.

Stephen Davies
19 Posted 10/05/2024 at 13:45:00
Perhaps interested party has requested dropping appeal to cover any possibility of further reduction should appeal fail?
Stephen Vincent
20 Posted 10/05/2024 at 13:57:31
So in the end we were fined £6.2M — the difference in Premier League position that 8 points would have made.
Steve Dowdeswell
21 Posted 10/05/2024 at 14:08:09
So points deduction appeal withdrawn. We cannot be relegated as it stands.

Could we be thinking of looking at how things stand in the league after Saturday and, pending results, an announcement being made that we are going into administration and taking the additional automatic 9 points… and still staying up?

That would just be a massive up yours to Masters and the Premier League.

Joe Corgan
22 Posted 10/05/2024 at 14:24:43
I assume this means that we have no intention of bringing in administrators imminently.

It would be farcical to automatically receive a 9-point deduction, which could see us relegated, having voluntarily withdrawn the appeal.

Jay Harris
23 Posted 10/05/2024 at 14:30:53
Commonsense prevails.

We need to concentrate on getting a stadium naming rights sponsor to cough up before 30 June and/or look at player sales.

A little bit of creative accounting wouldn't go amiss too.

Now, what’s the value of all those lawnmowers Bill bought for Finch Farm???

Soren Moyer
24 Posted 10/05/2024 at 14:38:23
Probably a horse head has been found in Moshiri's bed!
Rob Dolby
25 Posted 10/05/2024 at 14:43:50
Peter 15,

In hindsight, we should have acted exactly like Man City in my opinion.

Stifling any attempts of competition and ambition isn't really sport.

I understand the rules are in place to protect clubs from going into administration but they also prevent competition and protect the established wealthy teams.

Switch the tables around: If Man City had acted like Everton, they wouldn't have won the trophies or broken through the glass ceiling at the top table. They probably would have faced fines and points deductions for trying to compete. Whilst watching on as Man Utd and Chelsea spend billions.

Newcastle will be next to test the rules. The wealthiest club on the planet are having to sell their top players to comply with P&S rules which are not for for purpose.

Withdrawing our appeal should also have been weighted with some sort of statement about our future position. There is already talk about another points deduction next season for us, Leicester, Villa, and Forest whilst the City elephant in the room isn't being dealt with.

The best league in the world, my arse.

Dave Waugh
26 Posted 10/05/2024 at 14:54:33
Whilst I would've preferred us to hold the original decision to account via the appeal (noting the NFFC's deduction was initially lower for a greater breach and that IC reports cited the inconsistencies), I suppose on reflection that bringing the curtain down on a truly horrendous season for the fans (staying up aside) at least allows us to put it to bed and move on.
Stephen Davies
27 Posted 10/05/2024 at 14:54:58
Financial Times now reporting 777 calling in Restructuring experts
Brian Harrison
28 Posted 10/05/2024 at 15:03:53
I would suggest that, if we beat Sheffield Utd and Luton lose at the weekend, then Moshiri should immediately put Everton into administration. We would then get deducted 9 points this season and next season start with a clean slate.

As going into administration after the season ends on 19 May means the 9-point deduction starts next season, surely a no brainer seeing its going to happen sooner or later.

Andrew Clark
29 Posted 10/05/2024 at 15:04:42
Yes, dropping the appeal saves legal costs, but if Brentford get 1 more point over the next 2 games than us, then that will cost us £3.5 million because we would drop a place in the league.

Glad it’s not my money.

John Chambers
30 Posted 10/05/2024 at 15:19:20
Brian the problem with that is how long it would take to resolve all the issues for the club to come out of administration/a “new” club is constituted. Worth reading this Wikipedia article:

Administration and liquidation of the Rangers Football Club plc

And see how Rangers struggled.

Ian Jones
31 Posted 10/05/2024 at 16:21:53
Brian, and also when a club goes into administration, it presumably leads to people at the club losing jobs and not only the football related jobs, the kind of jobs that aren't directly involved. Spare a thought for them.

Administration for us is the last place we and I assume Moshiri wants us to be.

Pat Kelly
32 Posted 10/05/2024 at 16:43:22
Disappointed with this. We're bending over while City and others are laughing. Have we sunk that low?

Apparently. Then, there's no one in charge who gives a toss about the Club.

Joe Corgan
33 Posted 10/05/2024 at 16:49:06
Full text from the paywalled FT.com article.

Everton Football Club’s suitor 777 Partners has called in turnaround and crisis management experts, as the investment firm wrestles with accusations of fraud and the unravelling of the reinsurance financing that underpinned many of its acquisitions.

The Miami-based group has appointed a team from B Riley Advisory Services to assist with “various operational challenges”, according to a 777 memo reviewed by the Financial Times.

“We have retained a team of professionals from B Riley Advisory Services (a division of B Riley Financial) to assist with managing through various operational challenges,” the memo said. It added that 777 is working to “rationalise” the business and “select the most profitable path forward for our investments”.

The advisory services company, which is part of Los Angeles-based B Riley Financial, does restructuring and turnaround work, forensic accounting and litigation support, and valuations.

The appointment comes after London asset manager Leadenhall Capital filed a lawsuit which alleged that 777 co-founders Josh Wander and Steven Pasko were “operating a giant shell game at best, and an outright Ponzi scheme at worst”.

According to the Leadenhall lawsuit, filed in a federal court in New York last week, Wander pledged more than $350mn in assets that “either did not exist, were not actually owned by Wander’s entities, or had already been pledged to another lender”.

777 has said it “vehemently refutes” the claims in the Leadenhall court filing.
777’s challenges have plunged Everton into uncertainty. British-Iranian owner Farhad Moshiri has been re-evaluating the sale of the Premier League side following the Leadenhall lawsuit, according to two people with knowledge of his thinking. 777 had hoped to complete the acquisition by the end of last year but the Premier League has not approved the deal.
Clubs in which 777 already has stakes have also been affected. This week, Belgian club Standard Liège said it had been hit with a transfer ban by football authorities “for failure to be able to provide all the requested proof of payment within the deadline”.

777 has also come under pressure because US regulators have pushed insurance group A-Cap to cut exposure to the group. A-Cap has set out a plan to take back control of assets ceded to 777 Re, the Bermudian reinsurer that funded the Miami group’s football deals.

Separately, 777-backed budget airline Bonza entered voluntary administration in Australia last month and cancelled its flights, forcing passengers to seek alternative travel arrangements.

Mark Shapiro, senior managing director at B Riley Advisory, is serving as interim chief operating officer at 777, according to the memo, which noted his “considerable experience as a financial restructuring adviser and CFO”.
B Riley Advisory co-chief executive Ian Ratner and senior managing director Ronald Glass are taking on “governance roles” at 777.

Ratner, who was the expert witness on behalf of the US Department of Justice in the BP Deepwater Horizon oil spill litigation, has experience in public and forensic accounting, business valuations, due diligence, corporate finance and bankruptcy consulting.

Glass is described as a “nationally recognised crisis manager, fiduciary, Chapter 11 trustee, chief restructuring officer and bankruptcy adviser” on B Riley’s website.

777 declined to comment on the appointment of B Riley. B Riley did not immediately respond to requests for comment.

Paul Ferry
34 Posted 10/05/2024 at 16:50:31
The sensible thing to do. (And if it is indeed the case that the absentee landlord is looking beyond 777, then perhaps sense has descended at long last.)

I was surprised when we lodged the appeal in the first place. I saw little or no chance that - what? - one point would be given back. I'm surprised that Forest got away without an additional points cut after an appeal that in the wording of the panel was frivolous.

This might also earn us a few brownie points with the North Wharf Road crew Not a bad move with word of a third case not far over the horizon.

I've said over and over again that I'm more worried about next season than this one and this is largely with our most critical summer ahead of us. I'm dreading the day after the Arsenal game.

Less so now, however, as a bit of common sense is finally rearing its head and, if there is any substance to yesterday's potentially welcome ownership whispers, then some sunshine has broken through the clouds.


Barry Cowling
35 Posted 10/05/2024 at 17:03:19
We will still have a legal bill to pay no doubt as the legal team would have already been preparing its case, so more unnecessary expense that we can ill-afford.
Mark Taylor
36 Posted 10/05/2024 at 17:08:22
So the club have brought in the 'corporate re-structuring' ghouls, as have our intended purchasers.

I am currently channeling my inner Laurel and Hardy…

Garry Martin
37 Posted 10/05/2024 at 17:09:50
Probably a behind-the scenes agreement between EFC and the Premier League. EFC will withdraw the appeal if no more points are deducted, which, probably suits both parties.

Especially due to the Forrest fisaco over penalties etc and EFC having already received two sactions.

The Premier League will not want to be seen as overly penalising EFC, also, EFC being currently 11 points above the 3rd place from bottom.

Everyone's a winner except, of course, Forest and Luton.

Alastair Donaldson
38 Posted 10/05/2024 at 17:18:19
I would still like to see some kind of protest either tomorrow or against Arsenal over this whole shipwreck of a governing body – “Premier” League piss-up in a brewery.

We will hopefully end the playing side of it respectably, but I'd love to see the side totally full of the most junior players against Arsenal, especially if that hands them the title over Man City.

The Chelsea situation will be really interesting, especially if they are allowed to get away with selling hotels to themselves!

Good riddance to a wretched season.

Phillip Warrington
39 Posted 10/05/2024 at 17:51:04
Everton should never back down, we've being doing it for far to long.

Fuck being the nice club, it doesn't work in the cut throat world of the Premier League.

Pete Neilson
40 Posted 10/05/2024 at 18:02:09
Brian (28),

After Leeds went into administration and Ken Bates then placed them into administration with relegation already confirmed, the FA changed the rules. If administration occurs after the fourth Thursday of March then the points deduction goes against the next season.

I'm assuming the EPL follow this although knowing Masters and Co, it's probably not written down.

Roger Helm
41 Posted 10/05/2024 at 19:45:43
The FT article referred to people with inside knowledge of Moshiri’s thinking. Who knew he was ever thinking anything?
Dennis Stevens
42 Posted 10/05/2024 at 20:01:34
Perhaps the people that the FT refer to are hypnotists, Roger?
Ian Wilkins
43 Posted 10/05/2024 at 20:18:18
Paul @15,

The Man City charge list is interesting.

I can understand that charges relating to fraud committed by City Owners will take time to prepare the case – highly volatile and sensitive. Most however relate to not submitting financial Information and supporting information, going back to 2009.

Either you have or have not submitted required information simple as. City claim innocence – have they got lost in the post or has the dog eaten them?

These more routine charges should have been dealt with and the club sanctioned, well before now.

The Premier League should answer why the latter did not happen.

Jerome Shields
44 Posted 10/05/2024 at 22:01:06
It was sensible to withdraw the appeal. Everton can now be looked at going forward without the further complication of an appeal for the parties involved. There are more than enough complications left.
Frank Sheppard
45 Posted 10/05/2024 at 22:08:42

Hopefully save us some £ on legal fees.

Mark Wynne
46 Posted 11/05/2024 at 02:16:50
I was thinking that, if we win and Luton lose at the weekend, it would tempt them to bring in the administrators to get the (next) penalty out of the way, rather than have it hanging over their heads come the new season.

I believe the cutoff is 19 May and if you believe half of what we hear about 777, then I think Moshiri is just buying time.

Martin Farrington
47 Posted 11/05/2024 at 08:43:10
So its ok for Spurs to have done what we have been deducted points for.
So much for fair competition.
However I think the withdrawal is correct.
You cant put Moshiri or his affidavit near a court. We'd end up with another 6.
Man is a walking nuclear disaster.

Mal van Schaick
48 Posted 11/05/2024 at 10:23:40
Thelwell has laid bare our position for next season in having to sell to stay solvent and loan players, but it looks like we are using virtually the same players next season.

Let’s hope we can replicate this season without points deductions, and remain in the league next season.

We can walk out on to the pitch at Bradley Moore to ‘stayin alive’.

Michael Boardman
49 Posted 11/05/2024 at 11:33:17
Not read too much into the previous comments, but as a personal opinion, this is an "I'm alright Jack" approach.

If all 14 non-top 6 teams took a stand, we could get somewhere, and as the January transfer window showed, everyone is bottling these rules.

Well done, Masters – and how did the 5th Champions League place for your darlings work out?

I'm disappointed that Everton did not stick with the appeal, but hey, "Please, Sir, can I have some more"?

I'll still be there next season, even when we get rinsed again with our reduced-level sales.

Raymond Fox
50 Posted 11/05/2024 at 12:03:22
The club have probably been tipped the wink from high up that we have absolutely no chance of escaping with no penalty for that offence.

Simple as that.

Andrew Gaule
51 Posted 12/05/2024 at 01:45:19
This has probably been said before, but what we didn't want was for the appeal body to agree with the injustice of having two deductions in the current season, and consequently transfer the 2-point penalty to next season.
Eric Myles
52 Posted 16/05/2024 at 10:37:21
Liverpool and Everton could share £36M windfall if Man City found guilty of 115 charges

So, if we would have earned another £19.3 million if City are found guilty of being cheats, then maybe we wouldn't have breached the PSR and we can sue the Premier League for the loss of prize money for this season?

But then again, our board would probably just have wasted it.

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