Everton points deduction explained ahead of crucial Merseyside Derby

Everton were docked TWO POINTS on Monday for a second breach of the Premier League’s profit and sustainability rules ahead of the Merseyside Derby. 

The Toffees were found guilty of their first breach in November, which cost them an initial 10-point penalty but that was reduced to six on appeal. 

Their latest punishment means they drop one place to 16th in the Premier League table and are now only two points above the relegation zone. 

There are seven games to go and Everton are sweating with games against the league’s big names as well as relegation rivals on the horizon. 

They play Chelsea away and Nottingham Forest at home in their next two fixtures, before a Merseyside Derby at home against title-chasing Liverpool. 

This latest points penalty could have massive repercussions on the derby with Everton desperate for points in order to secure their Premier League status and Liverpool having no room for any slip-ups with Arsenal and Manchester City also in contention for the league title. 

After the derby, meanwhile, the Goodison Park outfit face games against Brentford, Luton and Sheffield United before rounding out the season with a match against the Gunners. 

Sean Dyche’s side will be scrapping for every point they can get and that includes the Goodison Park showdown against the Reds on April 24. 

Everton’s latest points deduction pertains to the three-year accounting period to 2022-23. Their previous punishment covered the three-year period to 2021-22. 

Clubs are permitted to lose £105m over that timeframe but an independent commission found that the club breached that mark by £16.6m this time, in their words a “significant” breach. 

Points deduction not the end of the line for Everton

The Premier League sought a five-point penalty but the commission accepted the arguments of mitigation on the part of Everton. The club intend to appeal. 

This is not the end of the matter however with another punishment potentially looming, as the scale of their Bramley-Moore Dock Stadium interest costs could bring another points penalty. 

That is unlikely to be resolved before the end of the current campaign, however, meaning the Premier League season could well end with teams unsure whether they will be relegated or not. 

The season is “live” until a Premier League annual general meeting in June, but the league have set a May 24 backstop date for appeals to be wrapped up. 

Nottingham Forest are currently appealing their four-point penalty deduction which was levied against them for breaching PSR rules in the period ending 2022-23. 

Everton have also announced losses of £89.1 million for the 2022-23 year, with considerable uncertainty over their takeover by the 777 Partners firm.