Everton have been hit with an unprecedented 10-point penalty after being found to have “taken chances” with the Premier League’s financial rules.
An independent commission found the club’s desire to improve their on-pitch performance had resulted in them acting “irresponsibly” and exceeding permitted losses under the league’s profitability and sustainability rules (PSR).
The points deduction drops Everton to 19th in the table and leaves major question marks over whether a sale of the club by current owner Farhad Moshiri to an American investment firm, 777 Partners, will proceed.
The club immediately indicated their intention to appeal against the sanction. It is understood the appeal will be heard during the course of the current season.
Everton could also now face compensation claims against them over the case.
The Premier League published a commission judgement from May which granted five clubs – Leeds, Nottingham Forest, Southampton, Leicester and Burnley – 28 days from Friday to inform the commission of their intention to pursue a compensation claim.
None of those clubs have so far commented on this matter.
The Premier League’s PSR permit losses of £105million over a three-year period. Everton’s losses up to 2021-22 were found to be £124.5million, exceeding the limit by £19.5million even accounting for allowances made for the Covid-19 pandemic.
The club put forward various items they felt should be excluded from the PSR calculation, including interest costs related to the construction of their new stadium at Bramley-Moore Dock, the portion of the club’s transfer levy related to youth development and the £10m lost on the club’s decision not to seek damages against a player whose contract was terminated in 2021.
Everton also argued that a depressed summer transfer market in 2020 owing to Covid-19 reduced the revenue they would have earned from player sales. They also said they had lost out on a £200m stadium naming rights deal with USM as a result of Russia’s invasion of Ukraine and the subsequent sanctions imposed by the British Government. USM is a conglomerate whose single largest stakeholder is Russian billionaire Alisher Usmanov.
However, the commission concluded: “The cause of Everton’s PSR difficulties was the fact that it overspent (largely on its purchase of new players and its inability to sell other players), and because it finished lower in the league than it had projected in FY 2022 (16th against the projected 6th – causing a loss of expected income of c.£21 million).
“Everton’s understandable desire to improve its on-pitch performance (to replace the non-existent midfield, as Mr Moshiri put it in evidence) led it to take chances with its PSR position: those chances resulted in it exceeding the £105 million threshold by £19.5 million.
“The position that Everton finds itself in is of its own making – it is Everton’s responsibility to ensure that it complies with the PSR regime. The excess over the threshold is significant. The consequence is that Everton’s culpability is great.
“We take into account the fact that Everton’s PSR trend over the relevant four years is positive, but cannot ignore the fact that the failure to comply with the PSR regime was the result of Everton irresponsibly taking a chance that things would turn out positively.
“Further, Everton was less than frank in its dealings with the Premier League over the stadium interest issue.
“The reality is that Everton failed to manage its finances so as to operate within the generous threshold of £105m. Its mismanagement led to that threshold being exceeded by £19.5million.
“This was a serious breach that requires a significant penalty.”
The commission concluded that a sporting sanction was the only option for a club owned by a billionaire like Moshiri.
“A financial penalty for a club that enjoys the support of a wealthy owner is not a sufficient penalty,” the commission’s written reasons stated.
“We agree with the Premier League that the requirements of punishment, deterrence, vindication of compliant clubs, and the protection of the integrity of the sport demand a sporting sanction in the form of a points deduction. The issue is not the form of sanction, but its extent.”
The written reasons show Everton’s position was that any sanction imposed by the commission should be financial rather than sporting in nature, but said if it had to be a sporting sanction then a transfer ban would be more appropriate than a points deduction.
The club said in a statement: “Everton Football Club is both shocked and disappointed by the ruling of the Premier League’s commission.
“The club believes that the commission has imposed a wholly disproportionate and unjust sporting sanction.
“The club has already communicated its intention to appeal the decision to the Premier League. The appeal process will now commence and the club’s case will be heard by an Appeal Board appointed pursuant to the Premier League’s rules in due course.
“Everton maintains that it has been open and transparent in the information it has provided to the Premier League and that it has always respected the integrity of the process.
“The club does not recognise the finding that it failed to act with the utmost good faith and it does not understand this to have been an allegation made by the Premier League during the course of proceedings.
“Both the harshness and severity of the sanction imposed by the commission are neither a fair nor a reasonable reflection of the evidence submitted.
“The club will also monitor with great interest the decisions made in any other cases concerning the Premier League’s Profit and Sustainability Rules.”
Portsmouth and Middlesbrough are the only other clubs to have been docked points in Premier League history. Pompey were hit with a 10-point sanction in March 2010 after entering administration while Boro’s three-point penalty in January 1997 related to a short-notice match postponement the previous month. Both clubs were relegated at the end of the season.
Much like daCosta Cup final, Glenmuir and Clarendon College to decide Champions Cup showpiece
Glenmuir High will contest their first ever ISSA Champions Cup final against neighbours Clarendon College, following a 5-3 penalty shootout win over Kingston College, after they played out a 1-1 stalemate in regulation time in a keenly contested semi-finals encounter at the Anthony Spaulding Sports Complex on Tuesday.
Interestingly, both Glenmuir and Clarendon College will also contest the daCosta Cup final, as both remain on course to secure the coveted triple crown feat.
Brandon Wallace gave Glenmuir High a 14th-minute lead, but that was cancelled out by Darnel Edwards’s 16th-minute effort, which set up the dreaded penalty kicks.
The May Pen-based Glenmuir was perfect from the 12-yard spot converting all five kicks, while goalkeeper Antwone Gooden came up big to deny Jaheim McLean and ensure the Andrew Peart-coached side a spot in another final.
Pert was delighted by the accomplishment but is well aware that the job is not yet finished with the final to be contested on Saturday at the National Stadium.
“I am very pleased; it was progressing from a semi-final to a final so for us now the focus is strictly on the game for Saturday. Well done to the boys and everyone involved, this is five finals in three years…Under-14, Under-16, Ben Francis Cup, daCosta Cup and Champions Cup, so that is commendable for the school and the objective is now to go and win it,” Peart declared.
It was a lively start by both teams, particularly Glenmuir, who gradually gained the ascendancy in the early exchanges. Kyle Gordon went on one of those early breaks, but the quality of the finish lacked the build-up, as the chance went begging.
However, Wallace spared his blushes eight minutes later with an exquisite right-footed finish from well over 20 yards out, and from an angle, that left Kingston College’s goalkeeper Malique Williams beaten all ends up.
Kingston College replied shortly after with two efforts coming in quick succession, the second proving fruitful, as Edwards’s left-footed shot from top of 18-yard box took wicked deflection and slipped past Gooden at near post.
From there, both teams canceled out each other, as they gave as good as they got in the attacking third, but faulty shooting proved their undoing and so it was left for the dreaded penalties to decide a winner.
Though disappointed about losing a second semi-final via the shootout route, Vassell Reynolds of Kingston College found solace in his team’s improvement throughout the season.
“I thought we played well enough (to win). It was a good game on both ends, both teams created a number of chances, but we knew from the beginning that it was going to be a chess game because both teams would have employed a similar system, so it was just who executed more today,” Reynolds said.
“I thought it was a good run we saw a lot of improvements from where we started in July and the boys continued to grow, we are disappointed that we are not playing in one of the finals, but I thought it was a good run for us,” he added.
Alan Shearer blasts ‘disgusting’ penalty as Newcastle denied win in Paris
Former Newcastle skipper Alan Shearer has blasted the decision which handed Paris St German a Champions League get out of jail card against his home town club “disgusting” and “s***”.
Shearer, the Magpies’ record goalscorer, voiced his frustration on social media after Polish referee Szymon Marciniak was asked to review his decision not to award a penalty when Ousmane Dembele’s cross hit Tino Livramento in the ribs and then hit the underside of his arm. The referee belatedly pointed to the spot.
Kylian Mbappe, who had been denied repeatedly by goalkeeper Nick Pope and his defenders, made no mistake from 12 yards in the eighth minute of stoppage time at the Parc des Princes to secure a 1-1 draw.
An unimpressed Shearer wrote on his X – formerly Twitter – account: “Do me a f****** favour man. What a load of s***t.
“A superb battling away performance from every single player. Shouldn’t be spoilt by a disgusting decision. Well done @NUFC.”
Shearer’s former Newcastle team-mate Shay Given was equally unhappy with the decision, which brought back memories of the night in Paris that Thierry Henry’s handball which went unnoticed and cost the Republic of Ireland a place at the 2010 World Cup finals.
Given posted on X: “What a performance from the Toon. Terrible decision to give a penalty, not the first time I’ve left Paris with a controversial handball decision.”
Former Newcastle and England striker Michael Owen also criticised the penalty decision and the way the handball rule is being interpreted.
Owen wrote: “Heartbreaking for @NUFC. Such a good performance. Never in a million years is that a penalty.
“We are further away from applying consistency to the handball rule than we’ve ever been.”
TNT Sports pundit Ally McCoist branded Mr Marciniak’s decision “a disgrace”.
McCoist said: “It comes off his chest, then hits his left elbow. If that’s a penalty, we might as well forget about it.
“If we’re giving penalty kicks for that, it’s a disgrace. The whole night will be remembered by that decision.”
Colleague Jermaine Jenas, who spent more than three years of his playing career at St James’ Park, added: “It is a shocking decision – not in any walk of life is that a penalty. What is meant to do with his arms – wrap them around his back?
“I am fuming.”
Late penalty leaves Eddie Howe ‘hugely frustrated’
Newcastle boss Eddie Howe was left fuming after Paris St Germain denied Newcastle a priceless Champions League victory with a controversial stoppage-time penalty.
The Magpies looked to be heading for a famous 1-0 win at the Parc des Princes as they battled their way through a second-half onslaught from the hosts until Polish referee Szymon Marciniak awarded a spot-kick against Tino Livramento after a VAR review, allowing Kylian Mbappe to level in the eighth and final minute of added time.
Howe, who said in a television interview that the official had been placed under “extreme” pressure by the PSG players, labelled a decision which cost his side two precious points “poor” in his post-match press conference.
Asked if he felt a sense of injustice, he said: “Yes, I do. It wasn’t the right decision in my opinion.
“There are so many things to take into account at that moment, the speed first. It was a ricochet that when it is slowed down, looks completely different to the live event.
“The ball hits his chest first, comes up and hits his hand. But his hand is not in an unnatural position, they [his hands] are down by his side, but he is in a running motion.
“I feel it is a poor decision and it’s hugely frustrating for us as you know how little time there is left in the game. There is nothing we can do about it now.”
The pivotal moment arrived in the fifth minute of stoppage time when Ousmane Dembele attempted to deliver the ball across the Newcastle penalty area and saw it hit Livramento’s side and rear up on to the underside of his arm.
Mr Marciniak, who had earlier seen decisions not to award spot-kicks for an Anthony Gordon challenge on Achraf Hakimi and a shout for handball against teenager midfielder Lewis Miley upheld, was advised to review the incident and this time decided to award the penalty.
The Magpies, who had taken a 24th-minute lead through Alexander Isak, defended it for grim life until the last-gasp controversy, although they needed Pope to be at his brilliant best on several occasions.
They now need to beat AC Milan at home on December 13 and hope PSG do not win away to Borussia Dortmund to progress.
Asked if that was something to cling on to, Howe, who celebrates his 46th birthday on Wednesday, said: “Yes, I think that’s absolutely right. In the next couple of days, that will become more relevant in our thoughts, I think.
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“When the draw came out, it was the ‘group of death’ and I don’t think many people gave us a chance of qualifying from it and sitting here now, I’m a little bit frustrated that it’s not in our hands because when I look back at the two Dortmund games, I felt we could have done better in those matches.
“I don’t think it’s the time for that, I think it’s probably a time to be positive and to say that if we can beat Milan, then good things can happen from it.”
For PSG boss Luis Enrique, there was a mixture of relief and frustration on a night when his side created a host of chances but were unable to take any of them until Mbappe’s late intervention.
Enrique said: “Without a doubt, we played a very great game. We deserved to win. We played better than Newcastle. The result does not reflect what happened on the pitch.
“It’s not basketball. We are one of the teams in Europe that scores the most. Sometimes the ball doesn’t want to go in.
“Sometimes the game looked like table tennis. I couldn’t believe we couldn’t score, but we carried on despite the frustration.”
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