As Everton braces for their next Premier League charge over Profitability and Sustainability Rules, recent developments have strengthened their case, potentially reshaping the course of their impending battle.
Following a reduction of their 10-point deduction to six points on appeal for breaching Financial Fair Play regulations spanning from 2018 to 2022, Everton now face scrutiny for their accounts from 2019 to 2023. However, the scale of their alleged breach remains undisclosed by the league.
Amidst the looming threat of a second points deduction within the same season, Everton is gearing up to invoke the principle of double jeopardy, arguing against being penalized twice for the same offense.
The appeal board characterized Everton’s breach as “substantial,” citing a £124.5m loss over the 2018-22 period, exceeding the permitted threshold by £19.5m. This excess, deemed to confer “a significant sporting advantage,” warranted a deduction “to be fair to other Premier League clubs.”
Yet, the board’s written reasons acknowledged Everton’s financial progress, particularly in the 2021-22 period, albeit amidst continued losses. Encouraging signs persisted into the 2022-23 fiscal year, marked by player sales and wage bill reductions, albeit amid expenses related to the construction of the Bramley-Moore Dock stadium.
Crucially, the appeal board emphasized the importance of avoiding double counting, ensuring that the excess loss over £105m isn’t penalized more than once.
Everton is poised to assert that 75% of the accounting period for the second charge has already been sanctioned, citing EFL rules referenced in the appeal board’s verdict. These rules, designed to prevent double punishment for the same transgression, may serve as a pivotal argument in Everton’s defense strategy.
