Everton has been "given a 10-point deduction" after an independent commission "found them guilty of breaching the Premier League’s financial fair play (FFP) rules," according to Richard Jolly of the London INDEPENDENT. Everton will "drop from 14th to 19th place" in the Premier League table and be "plunged into greater danger of relegation." They become the "first English top-flight club to receive such a punishment for falling foul of FFP guidelines." Everton had announced a total loss of about $326M for the three-year period from 2019 to 2022, which was "far above" the almost $114M permitted. Clubs were "also permitted additional losses related to the Covid-19 pandemic" and infrastructure costs "are exempt, meaning there is a grey area in terms of interest payments on the costs of building Everton’s new stadium." Everton contends that is "where the discrepancy lies" and that it is a "matter of the interpretation of accounting." In addition, Everton had a $217M "pre-agreement for a naming rights deal" for their new Bramley-Moore Dock stadium with USM, Russian billionaire Alisher Usmanov’s company, which they "had to abandon after Russia’s illegal invasion of Ukraine in February 2022." Everton has "willingly operated under a de facto salary cap since then" (London INDEPENDENT, 11/17).
NOT OVER YET: In London, Paul Joyce reports Everton confirmed that it will "appeal against the decision," and such an appeal "must be heard, and concluded, before the end of the season." But the outcome is "not expected" to affect US company 777 Partners' attempts to buy Farhad Moshiri’s 94.1% shareholding. The planned takeover is "still awaiting approval" from the Premier League and the Financial Conduct Authority, but 777’s negotiations with Moshiri "factored in different prospective punishments." The punishment comes with fellow Premier League club Manchester City having "previously been charged with 115 breaches" of the league’s rules and "increasing pressure to proceed with that case" (London TIMES, 11/17).
