An independent Appeal Board has concluded that the sanction for Everton FC’s breach of the Premier League’s Profitability and Sustainability Rules (PSRs), for the period ending Season 2021/22, will be an immediate six-point deduction.
This follows the club’s appeal of an independent Commission’s decision in November 2023 to impose a 10-point deduction for the club’s breach of the PSRs.
The appeal was heard over three days earlier this month, by an Appeal Board comprising Sir Gary Hickinbottom (Chair), Daniel Alexander KC and Katherine Apps KC.
Everton FC appealed the sanction imposed against it on nine grounds, each of which related to the sanction rather than the fact of the breach, which the club admitted.
Two of those nine grounds were upheld by the Appeal Board, which has substituted the original points deduction of 10 for six.
This revised sanction has immediate effect and the Premier League table will be updated today to reflect this.
Click here to read the independent Appeal Board’s full written reasons, which includes a two-page summary of its decision.
Appeal Boards are independent of the Premier League and member clubs. The members of the Appeal Board were appointed by the independent Chair of the Premier League Judicial Panel.
The Premier League Board is satisfied with today’s decision and that the independent disciplinary process, clearly set out in its Rules and agreed by all clubs, has been followed throughout.
Notes
Profitability and Sustainability Rules (see Premier League Handbook Section E)
- All Premier League Clubs are assessed for their compliance with the Profitability and Sustainability Rules each year.
- Compliance is assessed by reference to the Club’s PSR Calculation, which is the aggregate of its Adjusted Earnings Before Tax for the relevant assessment period.
- A Club’s Adjusted Earnings Before Tax figure for each season takes account of its profit or loss after depreciation and interest, but before tax, and then applies a series of "add backs".
- These "add backs" are costs that the Premier League and its Clubs recognise to be in the general interest of the club and football e.g. investment in infrastructure, community, women’s football, youth development and depreciation of tangible fixed assets. Exceptionally, in relation to years 2019/20, 2020/21 and 2021/22 COVID-19 costs were also permitted to be included as "add backs".
- Ordinarily, a Club’s PSR Calculation is the aggregate of its Adjusted Earnings Before Tax over a three-year period. Following amendments made to the PSRs during COVID-19, the relevant figures for Seasons 2019/20 and 2020/21 are now averaged. In the present case, therefore, the relevant period included Season 2021/2022, the average Adjusted Earnings Before Tax for Seasons 2020/21 and 2019/20 and Season 2018/19.
- A Club will be in breach of the PSRs if its PSR Calculation over the relevant period results in a loss in excess of £105 million (with that threshold reduced by £22 million for each season that the relevant Club has been in the Championship during the relevant period).
Premier League investigations, independent Commissions, and Appeal Boards
- The Premier League Board have the power to investigate any suspected or alleged breach of Premier League Rules.
- Where, following the conclusion of an investigation or otherwise, the Board believes that there is a suspicion or allegation of a Rule breach, it has a number of options available to it. One of these options is to issue a written compliant and refer the matter to a Commission.
- The League has access to an independent Judicial Panel, comprising a number of legal, financial and other experts.
- Members of the Judicial Panel are appointed by its independent Chair, Murray Rosen KC, an experienced barrister. It is the Chair who selects members of the Judicial Panel to sit on Commissions, which are independent of the Premier League
- All proceedings are confidential and heard in private.
- There are a range of sanctions available to the Commission which include fines, points deductions and other sporting sanctions.
- At the conclusion of proceedings, a Commission’s final decision will be published on the Premier League website.
- A party to the proceedings which wishes to challenge a decision of the Commission may to do so under Section W of the Premier League Rules.
- The Appeal Board is also appointed by Mr Murray Rosen KC and must have three members, one of whom should have held judicial office, and would sit as the chair of the Appeal Board.
- The Appeal Board was chaired by former Lord Justice of Appeal Sir Gary Hickinbottom.
- The proceedings of the Appeal Board are also confidential and heard in private.
- The Appeal Board has wide discretion in respect of the appeal, and may allow it, dismiss it, or make any order that it deems fit (including varying the order of Commission).
- For further information on the disciplinary process, please see Section W of the Premier League Handbook.
