Everton withdraw points deduction appeal

Everton have had eight points deducted for financial rule breaches this season

Everton have withdrawn their appeal against a two-point deduction for breaching Premier League financial rules.

The Toffees were docked two points after an independent commission found the club had breached profit and sustainability rules (PSR) by £16.6m for the three-year period to 2022-23.

The appeal was due to take place next week with a verdict announced before the final game of the season at Arsenal on 19 May.

The Toffees had a 10-point deduction reduced to six on appeal in February for PSR breaches in the three-year period to 2021-22.

Successive home wins over Nottingham Forest, Liverpool and Brentford last month secured Everton's Premier League safety.

They face Sheffield United in their final home game of the season at Goodison Park on Saturday at 15:00 BST.

Nottingham Forest's appeal against their four-point deduction for breaching PSR rules was rejected by an independent panel on Tuesday.

In its written reasons for Everton's most recent deduction, the independent commission said the Premier League's starting point for any PSR sanction was a five-point deduction but conceded two should be taken off because of the overlap in the years that were assessed in the club's two cases.

The commission decided that any breach of PSR justifies a three-point deduction, with an additional two points because Everton's breach of £16.6m - 15.8% above the £105m threshold - was deemed significant.

However, the commission accepted Everton's arguments for mitigation in relation to the fact the club had already been deducted points this season, suffered a loss of revenue because of the suspension of a sponsorship deal with Russian company USM and made an early admission of guilt. This led to the sanction being reduced to two points.

The Merseyside club could face a further points deduction in relation to interest costs associated with the building of the club's new stadium at Bramley-Moore Dock, though there is no timescale for that issue to be resolved.

'Players will be sold this summer' - Thelwell

Director of football Kevin Thelwell says Everton's financial situation means players will be sold this summer and the club will utilise the loan market to help strengthen the squad.

There remains uncertainty over the likes of coveted defender Jarrad Branthwaite, midfielder Amadou Onana and goalkeeper Jordan Pickford, who are all regularly linked with interested clubs.

"Whilst we want to ensure the team is as competitive as possible, we cannot lose sight of our central objective to protect the long-term stability of the club," Thelwell wrote in his programme notes for the Sheffield United game.

"That may not be exciting to hear but, under our current circumstances, it is the right thing for Everton."

Despite securing Premier League survival, there remains off-field uncertainty over the club's takeover.

Miami-based investment group 777 agreed to buy Everton majority shareholder Farhad Moshiri's 94% stake in September but the deal is yet to be ratified.

The Premier League has set four conditions to approve the deal but 777 has experienced financial strife in the past month.

The Everton Shareholders' Association (EFCSA) labelled the protracted takeover a "farce" and called for Moshiri to call off the deal.

Timeline to Everton cases

24 March 2023: Premier League refers Everton to independent commission over alleged breach of financial fair play rules for the three-year accounting period ending with the 2021-22 season.

17 November 2023: Everton receive an immediate 10-point deduction after being found to have breached the Premier League's financial rules.

15 January 2024: Everton and Nottingham Forest are charged by the Premier League for breaches of the league's profit and sustainability rules.

26 February: Everton's first penalty for breaching Premier League financial rules is reduced from 10 points to six after an appeal.

Week commencing 25 March: Hearing for Everton's second charge, relating to three-year accounting period ending in 2022-23, takes place.

8 April: Everton receive second points deduction, this time docked two points.

10 May: Everton withdraw appeal against second points deduction.

19 May: Final day of the Premier League season.