Leeds United's past Premier League relegation rivals handed second points deduction after financial breach

Everton have been handed another points deduction for a breach of profitability and sustainability rules (PSR) during the period in which they pipped Leeds United to Premier League survival.

Everton have been docked two points for breaching PSR during the three-year period ending in the 2022/23 season, following referral to an independent commission by the Premier League in January. The Toffees had already been deducted six points for a breach through the previous three-year period ending in 2021/22, having seen it reduced from 10.

A Premier League statement read: “An independent commission has given an immediate two-point deduction to Everton FC for a breach of the Premier League’s profitability and sustainability rules (PSRs) for the period ending season 2022/23.

“Over a three-day hearing last month, the independent commission heard evidence and arguments from the club in respect of a range of potential mitigating factors for its admitted breach of £16.6million, including the impact of its two successive PSR charges. Having done so, the commission determined the appropriate sanction to be a two-point deduction, taking effect immediately.

“The independent commission reaffirmed the principle that any breach of the PSRs is significant and justifies, indeed requires, a sporting sanction.”

Premier League clubs are permitted to lose a maximum of £105m over any given three-year timeframe, with Everton admitting to a breach of £16.6m for the most recent period. That period ended last season and saw the Merseyside club survive in the top flight by the skin of their teeth.

Everton finished the 2022/23 campaign in 17th place, two points above Leicester City and five above Leeds, who were both relegated alongside bottom-placed Southampton. Nottingham Forest, who finished 16th, have also been deducted points after being found guilty of a PSR breach.

Leicester are also facing a points deduction after being charged by the Premier League for a PSR breach. Their published accounts for last season confirmed a loss of £89.7m, following previous losses of £92.5m and £31.2m. The Foxes have been placed under a transfer embargo by the English Football League and could be forced to offload players in order to avoid another breach this summer.

It means that all three teams who finished directly above Leeds during their relegation season could end up receiving points deduction for breaching PSR during that campaign. Those in charge at Elland Road were thought to be considering legal action, given the huge losses as a result of relegation, but it is not clear whether that has been pursued.