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Everton’s Shaky Finances Raise Specter of Devastating 12-Point Deduction

Everton’s Shaky Finances Raise Specter of Devastating 12-Point Deduction

The Premier League’s recommendation of a potential 12-point deduction for Everton due to alleged financial breaches has raised concerns about the club’s future and its ability to compete in the ongoing season. This severe sanction could have significant implications for Everton’s standing in the league table and their chances of achieving their goals for the season.

The specific charge against Everton has not been revealed, but it is believed to be related to a tax issue concerning loans for the club’s new Bramley Moore Dock stadium, which is currently under construction. The Premier League referred Everton to an independent commission in March after reviewing the financial records of all top-flight clubs for the 2021-22 season.

If the deduction of 12 points is imposed, Everton’s current score would drop to minus five points in the ongoing season’s league table. This would be a major setback for the club, as they would have a significant deficit to overcome in order to climb up the standings and achieve a favorable position.

According to the Premier League’s profitability and sustainability rules, clubs are allowed to sustain losses of up to £105 million in three years or potentially face penalties. However, Everton has reported losses of £371.8 million in the past three years and has faced annual losses for five consecutive years, totaling over £430 million during this time. These financial struggles may have contributed to the severity of the recommended sanction.

Everton has strongly contested the allegations of non-compliance and has expressed confidence in its compliance with all financial rules and regulations. The club has emphasized its transparency and good faith in providing information to the Premier League over the years. Everton is prepared to defend its position to the independent commission and hopes to avoid the severe sanction.

The timing of this potential deduction is unfortunate for Everton, as the club is currently subject to a takeover bid by the American private investment company 777 Partners. The bid has faced scrutiny, with a recent report claiming that it had stalled due to a failure to provide information to the Financial Conduct Authority (FCA). This additional uncertainty surrounding the club’s ownership further complicates the situation.

Furthermore, Everton recently experienced a significant loss with the passing of their longstanding chairman, Bill Kenwright. This loss adds another layer of challenge and adjustment for the club during an already tumultuous period.

In conclusion, the Premier League’s recommendation of a 12-point deduction for Everton highlights the serious nature of the alleged financial breaches. If imposed, this sanction could have a significant impact on the club’s current standing and future prospects. Everton’s ability to defend its position and navigate through this challenging period will be crucial in determining the outcome of the disciplinary hearing and the club’s trajectory moving forward.

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