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.
Image: Everton have dropped into the relegation zone after being docked 10 points
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.”
Labour’s welfare reforms bill has passed, with 335 MPs voting in favour and 260 against.
It came after the government watered down the bill earlier this evening, making a dramatic last-minute concession to the demands of would-be rebel MPs who were concerned about the damage the policy would do to disabled people.
The government has a working majority of 166, so it would have taken 84 rebels to defeat the bill.
In total, 49 Labour MPs still voted against the bill despite the concessions. No MPs from other parties voted alongside the government, although three MPs elected for Labour who have since had the whip removed did so.
Which Labour MPs rebelled?
Last week, 127 Labour MPs signed what they called a “reasoned amendment”, a letter stating their objection to the bill as it was.
The government responded with some concessions to try and win back the rebels, which was enough to convince some of them. But they were still ultimately forced to make more changes today.
In total, 68 MPs who signed the initial “reasoned amendment” eventually voted in favour of the bill.
Nine in 10 MPs elected for the first time at the 2024 general election voted with the government.
That compares with fewer than three quarters of MPs who were voted in before that.
A total of 42 Labour MPs also voted in favour of an amendment that would have stopped the bill from even going to a vote at all. That was voted down by 328 votes to 149.
How does the rebellion compare historically?
If the wording of the bill had remained unchanged and 127 MPs or more had voted against it on Tuesday, it would have been up there as one of the biggest rebellions in British parliamentary history.
As it happened, it was still higher than the largest recorded during Tony Blair’s first year as PM, when 47 of his Labour colleagues (including Diane Abbott, John McDonnell and Jeremy Corbyn, who also voted against the bill on Tuesday) voted no to his plan to cut benefits for single-parent families.
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.
A 92-year-old man has been sentenced to life with a minimum term of 20 years in prison for the rape and murder of an elderly widow nearly 60 years ago.
Ryland Headley was found guilty on Monday of killing 75-year-old Louisa Dunne at her Bristol home in June 1967, in what is thought to be the UK’s longest cold case to reach trial, and has been told by the judge he “will die in prison”.
The mother-of-two’s body was found by neighbours after Headley, then a 34-year-old railway worker, forced his way inside the terraced house in the Easton area before attacking her.
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The UK’s longest cold case to reach trial
Police found traces of semen and a palm print on one of the rear windows inside the house – but it was about 20 years before DNA testing.
The case remained unsolved for more than 50 years until Avon and Somerset detectives sent off items from the original investigation and found a DNA match to Headley.
He had moved to Suffolk after the murder and served a prison sentence for raping two elderly women in 1977.
Prosecutors said the convictions showed he had a “tendency” to break into people’s homes at night and, in some cases, “target an elderly woman living alone, to have sex with her despite her attempts to fend him off, and to threaten violence”.
Image: Louisa Dunne in 1933. Pic: Avon and Somerset Constabulary
Image: Headley during his arrest. Pic: Avon and Somerset Constabulary
Headley, from Ipswich, who did not give evidence, denied raping and murdering Ms Dunne, but was found guilty of both charges after a trial at Bristol Crown Court.
Detectives said forces across the country are investigating whether Headley could be linked to other unsolved crimes.
Mrs Dunne’s granddaughter, Mary Dainton, who was 20 when her relative was killed, told the court that her murder “had a big impact on my mother, my aunt and her family.
“I don’t think my mother ever recovered from it. The anxiety caused by her mother’s brutal rape and murder clouded the rest of her life.
“The fact the offender wasn’t caught caused my mother to become and remain very ill.
“When people found out about the murder, they withdrew from us. In my experience, there is a stigma attached to rape and murder.”
Image: The front of Louisa Dunne’s home. Pic: Avon and Somerset Constabulary
Image: Louisa Dunne’s skirt. Pic: Avon and Somerset Constabulary
Finding out her grandmother’s killer had been caught after almost six decades “turned my life upside down,” she said.
“I feel sad and very tired, which has affected the relationships I have with those close to me. I didn’t expect to deal with something of such emotional significance at this stage of my life.
“It saddens me deeply that all the people who knew and loved Louisa are not here to see that justice has been done.”
Image: Palmprint images. Pic: Avon and Somerset Constabulary
After her statement, Mr Justice Sweeting told Mrs Dainton: “It is not easy to talk about matters like this in public.
“Thank you very much for doing it in such a clear and dignified way.”
The judge told Headley his crimes showed “a complete disregard for human life and dignity.
“Mrs Dunne was vulnerable, she was a small elderly woman living alone. You treated her as a means to an end.
“The violation of her home, her body and ultimately her life was a pitiless and cruel act by a depraved man.
“She must have experienced considerable pain and fear before her death,” he said.
Sentencing Headley to life imprisonment with a minimum term of 20 years, the judge told him: “You will never be released, you will die in prison.”
Detective Inspector Dave Marchant of Avon and Somerset Police said Headley was “finally facing justice for the horrific crimes he committed against Louisa in 1967.
“The impact of this crime has cast a long shadow over the city and in particular Louisa’s family, who have had to deal with the sadness and trauma ever since.”
The officer praised Ms Dainton’s “resilience and courage” during what he called a “unique” case and thanked investigators from his own force, as well as South West Forensics, detectives from Suffolk Constabulary, the National Crime Agency and the Crown Prosecution Service (CPS).
Three managers at the hospital where Lucy Letby worked have been arrested on suspicion of gross negligence manslaughter.
They were in senior roles at the Countess of Chester Hospital in 2015 and 2016 and have been bailed pending further enquiries, Cheshire Constabulary said. Their names have not been made public.
Letby, 35, was found guilty of murdering seven children and attempting to murder seven more between June 2015 and June 2016 while working in the hospital’s neonatal unit.
Detective Superintendent Paul Hughes explained that gross negligent manslaughter focuses on the “action or inaction of individuals”.
There is also an investigation into corporate manslaughter at the hospital, which began in October 2023.
That focuses on “senior leadership and their decision-making”, Mr Hughes said. The intention there is to determine whether any “criminality has taken place concerning the response to the increased levels of fatalities”.
The scope was widened to include gross negligence manslaughter in March of this year.
Image: Lucy Letby was found guilty of murdering seven children and attempting to murder seven more
Mr Hughes said it is “important to note” that this latest development “does not impact on the convictions of Lucy Letby for multiple offences of murder and attempted murder”.
He added: “Both the corporate manslaughter and gross negligence manslaughter elements of the investigation are continuing and there are no set timescales for these.
“Our investigation into the deaths and non-fatal collapses of babies at the neo-natal units of both the Countess of Chester Hospital and the Liverpool Women’s Hospital between the period of 2012 to 2016 is also ongoing.”
Earlier this year, lawyers for Lucy Letby called for the suspension of the inquiry, claiming there was “overwhelming and compelling evidence” that her convictions were unsafe.
Their evidence has been passed to the Criminal Cases Review Commission (CCRC), which investigates potential miscarriages of justice, and Letby’s legal team hopes her case will be referred back to the Court of Appeal.