When Everton’s second FPP appeal is due and why they could be docked more points

The Premier League have confirmed Everton have been deducted two further points for breaching Profitability and Sustainability Rules (PSR).

This is on top of the six they were already deducted earlier this season for a different PSR breach, reduced from 10 on appeal.

After the success of their first appeal, the Toffees confirmed they are appealing against their second deduction.

So, when will this appeal take place, what will Everton’s second appeal case look like, and what could come next for Sean Dyche’s side?

Why are Everton appealing their two-point FFP deduction?

There’s a fair argument Everton were quite fortunate to only receive a two-point deduction this time around, given the Premier League and independent commission originally recommended a five-point penalty.

This was reduced to two following mitigation around “overlapping years” (worth two points) and their cooperation and unique circumstances surrounding the impact of Russia’s invasion of Ukraine on the club (worth one point).

Yet Everton believe they should not have been punished again, saying: “While the Club’s position has been that no further sanction was appropriate, the Club is pleased to see that the Commission has given credit to the majority of the issues raised by the Club, including the concept of double punishment, the significant mitigating circumstances facing the Club due to the war in Ukraine, and the high level of co-operation and early admission of the Club’s breach.

“Everton remains committed to working collaboratively with the League on all matters relating to PSR but is extremely concerned by the inconsistency of different commissions in respect of points deductions applied.”

Yet it is this inconsistency which could still benefit Everton in their second appeal.

Given it is highly unlikely an appeal commission would impose a harsher punishment, they have very little to lose here other than more money in legal fees.

They are essentially hoping they can benefit from the lack of established guidelines around PSR penalties and varied opinions of different commissions.

Each independent commission so far has come to a different conclusion on how PSR breaches should be punished, and there is no benchmark in place for how to deal with a case as complex as Everton’s.

Given the scale of the mitigation in the initial case, there may well be scope for this to extend further, which would result in either a one-point deduction or a pure financial penalty.

Everton are also upset with how the Premier League have assessed interest charges on loans they claim were solely used in the creation of the new stadium at Bramley-Moore Dock.

All stadium costs are exempt from PSR consideration.

When will Everton’s second appeal be heard?

PSR hearings happen one at a time, on a first come, first served basis.

Everton’s initial case was delayed due to the appeal for their first case still being ongoing, meaning Nottingham Forest’s case was heard first.

Forest’s verdict was announced on 18 March and they have since confirmed they will also appeal, which will take place before Everton’s second hearing.

This means the Toffees’ appeal is unlikely to be heard until the end of April or early May, potentially the week beginning 6 May.

The Premier League have put in place a backstop date for both cases to be concluded of 24 May – the Friday after the season ends – meaning Everton could play their final game without knowing whether it’s enough to keep them up.

Why could Everton face more points deductions next season?

This appeal may well still not be the end of Everton’s PSR woes.

In the 60-page report of this second case, the independent commission stated that there will be a further PSR hearing to assess whether Everton have breached the regulations by even more, due to issues around capitalising loans which the club claim are attached to the stadium.

The commission said that this meant part of the case had to be deferred past the allotted backstop date put in place by the Premier League, while the rest of the case would continue as planned.

This may well mean Everton face a further PSR case over the summer, which could lead to them starting the 2024-25 season on a points deduction – if they are still in the Premier League.

And past this, it is currently unclear whether Everton will adhere to PSR regulations for the period 2021-2024, as their 2023 accounts recently exposed an £89m loss, following a £45m loss in 2022.

While this is not the adjusted figure considered for PSR, it does show they are at risk of breaching the Premier League’s £105m loss limit over three years for a third time.

And this would then likely incur yet another points deduction, meaning Everton could face two points penalties in consecutive seasons.



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