Everton have been deducted 10 points for breaches of profit and sustainability rules, the Premier League has said.
The penalty, effective immediately, leaves the club with four points and plunges them into the relegation zone.
The Merseyside club said it was “shocked and disappointed” by the “wholly disproportionate” ruling and plans to appeal.
It comes after the league referred Everton in March to an independent commission after reviewing the financial records of all top-flight clubs for the 2021-22 season.
According to the rules, clubs can sustain losses of up to £105m in three years or potentially face penalties.
However, Everton FC reported losses of £124.5m for the relevant period.
Everton FC said in a statement after the points deduction: “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.
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“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.”
What rules were broken – and what about other clubs?
The Premier League’s financial rules are designed to ensure clubs “operate within their financial means”.
They were introduced following concerns that teams were spending far more on players than they were earning in ticket sales, merchandise and other income – sparking fears some could build up unsustainable levels of debt and go bust.
The rules include a requirement that teams must not lose more than £105m over a three-year period.
However, during the 2021/22 season, investigators ruled that Everton lost £124.5m – although the club claims there were mitigating factors.
Three clubs have previously been docked points in the league. Middlesbrough were deducted three for failing to fulfil a fixture against Blackburn in 1996/97, and Portsmouth were stripped of nine after going into administration in March 2010.
Tottenham were handed a 12-point deduction before the 1994/95 season for financial irregularities, but the punishment was later revoked.
The only other current team to have been charged with breaking the rules is Manchester City, which was accused of 115 breaches in February. However the case is still ongoing amid reported wrangling between legal teams behind closed doors. It is unclear when it will be resolved.
In August, the Premier League also announced it had launched an investigation into Chelsea over their finances. However, the club has not been charged with breaking any rules and that case is also ongoing.
Everton said 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 added that it would also “monitor with great interest the decisions made in any other cases concerning the Premier League’s profit and sustainability rules”.
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Everton said they could not comment any further until the appeal process was over.
Steve Rotheram, the mayor of Liverpool City Region, said the points deduction was an “excessive and grossly unfair punishment”.
Writing on X, formerly Twitter, he said: “I’ll be supporting the club in their appeal and writing to the Premier League to ask them to rescind it.
“This is about fairness, not partisan rivalry.”
The Premier League said in a statement: “During the proceedings, the club admitted it was in breach of the PSRs for the period ending Season 2021/22 but the extent of the breach remained in dispute.
“Following a five-day hearing last month, the Commission determined that Everton FC’s PSR Calculation for the relevant period resulted in a loss of £124.5million, as contended by the Premier League, which exceeded the threshold of £105million permitted under the PSRs.
“The Commission concluded that a sporting sanction in the form of a 10-point deduction should be imposed. That sanction has immediate effect.”
Delivering a speech at the King’s Fund in central London, he said: “We have to fix the plumbing before we turn on the taps.
“So, hear me when I say this, no more money without reform.”
The government has promised three “big shifts” in its approach to fix the NHS:
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1:44
‘We’re getting NHS back on its feet’
• Using more technology to create a “digital NHS” • Shifting more care out of hospitals and into communities • Moving from treating sickness to focusing on prevention
Describing problems in the NHS, Sir Keir said he wasn’t prepared to spend money “on agency staff who cost £5,000 a shift, on appointment letters which arrive after the appointment, or on paying for people to be stuck in hospital just because they can’t get the care they need in the community”.
“Tonight, there will be 12,000 patients in that very position – that’s enough to fill 28 hospitals.
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“That isn’t just solved by more money, it’s solved by reform.”
Sir Keir was speaking as NHS performance stats dropped showing the overall waiting list for treatment remained unchanged in July, with an estimated 7.62 million procedures waiting to be carried relating to 6.39 million patients.
The list hit a record high in September 2023 with 7.77 million treatments, after which the figures fell for several months before rising in April, May and June of this year.
Dr Nick Murch, president of the Society for Acute Medicine, said the new NHS figures “demonstrate the scale of the short-term challenge”.
In a Q&A after his speech, the prime minister would not be drawn on how soon patients could expect to see improvements.
Asked by Sky News health correspondentAshish Joshi what he would tell somebody who is ill now, Sir Keir said the success of his plans “is going to be measured in years, not months”.
He said: “I accept the challenge to me, which is that it’s going to take a long time, it’s going to be measured in years, not months, and we need to have something to say for someone who is ill now, which is getting the NHS back on its feet.
The speech comes after a report commissioned by the new government found the NHS is in a “critical condition”, with record waiting lists and too much of its budget spent in hospitals.
The study, carried out by independent peer and surgeon Lord Darzi, argues the NHS is facing rising demand for care as people live longer in ill health, coupled with low productivity in hospitals and poor staff morale.
It criticises political decision-making under the Conservatives and the coalition government, including the impact of austerity, a “starvation of investment” and the reorganisation of the NHS under the 2012 Health and Social Care Act,which Lord Darzi called “a calamity without international precedent”.
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Today’s major report by peer and NHS surgeon Lord Darzi on the National Health Service aims to perform three very clear political tasks.
The first is to set expectations that the service will not be fixed by the time of the next election by talking about a 10-year, two-parliament programme for change.
The second is to prepare the ground for more money to go into the NHS – something Sir Keir Starmer appeared to explicitly signal today.
The third is to change the way we think about what’s needed for the NHS.
This means moving away from the way the Tories’ talk about NHS reform – stop focusing on new hospitals as a goal in of themselves and framing social care reform as a means of freeing up NHS beds rather than protecting middle-class wealth, for instance.
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The most significant thing from Sir Keir’s interpretation of the report was an apparent acknowledgement that, in time, more money – presumably reasonable sums of more money – will be needed.
Addressing the King’s Fund thinktank, the prime minister said: “A Labour government will always make the investment in our NHS that is needed. Always. But we have to fix the plumbing before turning on the taps.
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“So, hear me when I say this, no more money without reform.”
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Look closely at this commitment – there is no question that the funding taps will be turned on in future, according to the PM – albeit not immediately.
He repeats this several times. This hints at proper additional sums. Taps when turned on gush with water – Sir Keir doesn’t appear to be promising a trickle.
But for what, we do not know. When it comes to solutions, the prime minister did not go beyond the slogans in his manifesto – turning the NHS from analogue to digital, for instance, and promising “tough decisions” on public health without even hinting what they are.
Pressed on what is truly different to previous administrations in his approach to the NHS, Sir Keir waxed lyrical about his “determination”, “mandate” and “sense of the future”.
These three things will not fix the NHS.
We will have to wait until the 10-year plan is unveiled next spring to find out what these slogans really mean in practice.
A 17-year-old male has been arrested as part of the investigation into a cyber security incident affecting Transport for London (TfL).
The teenager was detained in Walsall on suspicion of Computer Misuse Act offences in relation to the attack, which was launched on TfL on 1 September.
He has been questioned by officers from the National Crime Agency (NCA) and has been bailed.
It is understood some customer data was compromised, including customer names and contact details.
Some Oyster card refund data may also have been accessed. This could include bank account numbers and sort codes of around 5,000 customers.
The NCA has said it is working alongside TfL and the National Cyber Security Centre to manage the incident and minimise risk to customers.
Paul Foster, head of the NCA’s National Cyber Crime Unit, said: “We have been working at pace to support Transport for Londonfollowing a cyber attack on their network, and to identify the criminal actors responsible.
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“Attacks on public infrastructure such as this can be hugely disruptive and lead to severe consequences for local communities and national systems.
“The swift response by TfL following the incident has enabled us to act quickly, and we are grateful for their continued co-operation with our investigation, which remains ongoing.
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“The NCA leads the UK’s response to cybercrime. We work closely with partners to protect the public by ensuring cyber criminals cannot act with impunity, whether that be by bringing them before the courts or through other disruptive and preventative action.”
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Providing customers with an update, TfL said on Thursday: “Although there has been very little impact on our customers so far, the situation is evolving and our investigations have identified that certain customer data has been accessed. This includes some customer names and contact details, including email addresses and home addresses where provided.
“Some Oyster card refund data may have also been accessed. This could include bank account numbers and sort codes for a limited number of customers.
“If you are affected, we will contact you directly as soon as possible as a precautionary measure, and will offer you support and guidance.”
TfL said it has now put in place additional measures to improve its security and will provide further updates as soon as possible.