The Premier League has reportedly recommended a significant 12-point deduction from Everton's current standing due to alleged breaches of financial rules. The specific charge, while not yet revealed, is believed to be related to a tax matter concerning loans for Everton's new Bramley Moore Dock stadium, which is currently under construction.
In March, the Premier League referred Everton to an independent commission after reviewing the financial records of all top-flight clubs for the 2021-22 season. The disciplinary hearing began last week, with a decision expected later in the year.
It has been reported that the league has asked the independent commission to impose a severe sanction against the Merseyside club.
If the recommended 12-point deduction is imposed, Everton's current tally would drop to minus five points in the Premier League league table. This would be a significant blow to the club's standing and could have far-reaching implications for their season.
Breaching profitability and sustainability rules
According to the league's profitability and sustainability rules, clubs can sustain losses of up to £105m over three years or potentially face penalties. However, Everton has reported losses of £371.8m in the past three years and has faced annual losses for five consecutive years, amounting to over £430m during this time.
The league cited a potential violation of its profitability and sustainability (P&S) regulations during the period leading up to the 2021-22 season when it referred the club to the commission in March.
Everton issued a statement saying:
"The club strongly contests the allegation of non-compliance and, together with its independent team of experts, is entirely confident that it remains compliant with all financial rules and regulations.
"Everton is prepared to robustly defend its position to the commission. The club has, over several years, provided information to the Premier League in an open and transparent manner and has consciously chosen to act with the utmost good faith at all times."
Pending takeover and response
The team is currently subject to a takeover bid by the American private investment company 777 Partners. Last week, the firm refuted a New York Times report claiming that its bid had stalled due to a failure to provide information to the Financial Conduct Authority (FCA).
As of now, there has been no official response from either the club or the Premier League regarding the details of the report. The football world, especially Everton fans, will be keenly watching the developments and awaiting the decision of the independent commission.
The potential 12-point deduction could have a significant impact on Everton's season and their future in the Premier League. The club's financial troubles and the alleged breaches of the league's profitability and sustainability rules have put them in a precarious position.
The outcome of the disciplinary hearing and the pending takeover bid by 777 Partners will be crucial in determining the club's future.
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