Everton sanction Premier League's way of limiting regulator's power: Analysis

Everton's 10-point deduction for breaching financial rules is a sign the Premier League wants to limit the scope of an independent regulator while clubs that were relegated at their expense could seek legal recourse, a sports lawyer has said.

Everton became the first Premier League club to be deducted points for breaching profitability and sustainability rules (PSR) on Friday (Nov 17), when the league docked the Merseyside club 10 points over their finances in the 2020-21 season.

Simon Leaf, head of sport at law firm Mishcon de Reya, said the league's approach which led to unprecedented sanctions was the result of British lawmaker Tracey Crouch's recommendation for the creation of an independent regulator and the inclusion of the Football Governance Bill in the King's Speech.

British Prime Minister Rishi Sunak confirmed plans for an independent regulator to safeguard the future of clubs, where an Independent Regulator for Football (IREF) will have the power to step in and address club's cash flow and other systemic issues.

"In short, we are seeing a stronger Premier League seeking to demonstrate that any powers provided to the IREF should be limited because the Premier League has now got its own house in order," Leaf told Reuters.

"Only time will tell whether this proves to be a prudent strategy.

"Especially if the negativity that inevitably comes with imposing sanctions on clubs damages the value of the brand - particularly in important international markets and with a new domestic TV deal in the process of being negotiated."

When plans for a regulator were announced this year, the Premier League itself had said it recognised the case for change in football governance but that it was already implementing "stronger and more