Everton have been rocked by the news that they have been handed an immediate 10-point deduction for financial breaches.
The sanction was announced just after midday on Friday following an investigation conducted by an independent commission.
The significant punishment has left fans angry and concerned about what this could mean for the Toffees’ future.
Mail Sport looks to answer all the pressing questions about where this leaves the club.
Everton have been deducted 10 points for breaching the Premier League’s financial rules
What has happened to Everton?
The 10-point penalty leaves Everton in real danger of being relegated from the Premier League for the first time.
They have been mainstays since its inception in 1992, but have been hovering above the drop zone in the last two seasons, only confirming their survival in the final week on both occasions.
Sean Dyche’s men had looked set to have fewer issues staying up this time as they entered the international break in 14th place, eight points above the relegation zone.
But their points deduction has seen them drop to 19th, leaving them only above Burnley on goal difference.
The club have been battling with financial difficulties for some time, and still have a new stadium to pay for, with their £550m stadium at Bramley-Moore Dock expected to be completed by the end of 2024.
Should they suffer relegation in the meantime, this would only create more problems. Everton simply cannot afford to go down this season.
Sean Dyche’s men look set for another relegation battle after dropping into the bottom three following the points deduction
Their new £550m stadium at Bramely-Moore Dock is due to be completed next year, and getting relegated in the meantime would be a disaster
What does this mean for the Premier League?
Everton have been hit with the biggest points deduction in Premier League history, which may have set a precedent.
Manchester City are also being investigated after being hit with 115 charges in February for allegedly breaking financial rules.
Their case remains ongoing, and fans have called for them to receive an ever harsher punishment than Everton, if found guilty, due to the number of charges against them.
Meanwhile, Chelsea could also be at risk of a points deduction after leaked documents reportedly revealed a string of payments during former owner Roman Abramovich’s tenure that may have breached Financial Fair Play (FFP) rules.
Man City are still being investigated after being hit 115 charges in February for allegedly breaking financial rules
What did Everton do wrong?
Everton have breached the Premier League profit and sustainability rules.
They reported losses of £371.8m over a three-year-period, when the Premier League’s limit is £105m.
This triggered an investigation from the Premier League, and they have now been heavily sanctioned.
Who is being blamed?
This depends on who you speak to.
Friday’s statement from the Premier League claimed Everton admitted to breaching their FFP rules.
This indicates that Everton owner Farhad Moshiri is to blame for allowing the club to over-spend.
On the other hand, Everton have strongly denied any wrongdoing.
They believed they would be cleared after claiming they received allowances from the Premier League due to the financial impact of the Covid-19 pandemic.
However, they have now been found to have got on the wrong side of FFP and have paid the penalty as they drop into the bottom three.
The Premier League stated Everton admitted to breaching their financial rules, suggesting the Toffees’ owner Farhad Moshiri (right) is to blame for allowing the club to over-spend
Is it a fair punishment?
Not according to Jamie Carragher.
The former Liverpool defender and Sky Sports pundit believes the punishment is ‘excessive and not right’. He also pointed out that the club have been working with the Premier League to try and find a solution rather than running away from the issue over the past couple of years.
Everton also feel hard done by as they wanted a financial punishment or a transfer ban.
However, the Premier League actually pushed for an even harsher punishment as they were willing to deduct 12 points from Everton’s total.
And their rulebook hints that Everton may well have got off lightly. The league’s proposal of starting off at a six-point deduction and adding an extra point for every £5m over the financial limit was ignored by the commission.
Everton were more than £250m over the limit, and if the commission had followed the Premier League’s guidelines they could have been deducted 60 points.
Former Liverpool defender Jamie Carragher believes the punishment handed to Everton is ‘excessive and not right’
What has been Everton’s response?
Everton did not waste time in issuing a response to the 10-point penalty.
They released a 186-word statement on Friday afternoon that read: ‘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.
‘Everton cannot comment on this matter any further until the appeal process has concluded.’
What happens next?
Everton plan to appeal the verdict in the hope of getting a reduced punishment or for the 10-point penalty to be overturned completely.
But things could actually get worse for the Merseyside club.
Burnley, Leeds and Leicester – who have all been relegated in the past two seasons – have confirmed their intention to sue Everton for £300m.
The three clubs have repeatedly expressed unhappiness that the Everton case was not dealt with last season and are understood to feel even more strongly following the guilty verdict, as a points deduction in the previous campaign would have relegated them.
They wrote a joint letter to the Premier League last month to notify them of their plans to sue Everton if they were found guilty, and they are determined to follow through on this threat.
