Everton handed further 2-point deduction for financial breaches - ESPN

An independent panel has handed Everton a two-point deduction on Monday for breaching the Premier League's profit and sustainability (PSR) rules, the second time the club has faced a points deduction this season.

Premier League regulations stipulate that a club can lose no more than £105 million ($132.54m) over a three-year period.

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«Over a three-day hearing last month, the independent Commission heard evidence and arguments from the club in respect of a range of potential mitigating factors for its admitted breach of £16.6 million, including the impact of its two successive PSR charges,» the Premier League said in a statement.

«Having done so, the Commission determined the appropriate sanction to be a two-point deduction, taking effect immediately.»

The points deduction means Everton have dropped one place in the Premier League table to 16th, two points above the relegation zone.

The Premier League added that there remains a dispute over accounting of Everton's new stadium — the league argues they should be recorded as losses with regards to PSR, while Everton argues to the contrary. The league said Everton could yet face an additional penalty and will be resolved «at a later date.»

Everton announced in a statement that they plan to appeal the decision and have begun preparations to do so, adding that the club is «extremely concerned by the inconsistency of different commissions in respect of points deductions applied.»

In their published report, the independent commission states that the starting point of the deduction was five points, with all breaches garnering a three-point sanction plus an extra two for losing £16.6 million above the league's upper loss threshold.