Everton set for another independent commission hearing over £6.56m dispute after latest points deduction

The Premier League have still not fully resolved Everton’s latest profit and sustainability rule breach despite being hit with a second points deduction this season.

Earlier this season, the Toffees were docked 10 points for being guilty of breaking spending regulations by £19.5 million in the 2021-22 season. That was reduced to six upon appeal.

And after being referred to an independent commission for an alleged breach in the 2022-23 season, they have had a further two points taken off. It was adjudged that Everton overspent the £105 million threshold over a three-year period by £16.6 million. Mitigating circumstances such as the club’s cooperation, the Ukraine war which led to Russian oligarch Alisher Usmanov sanction having held a £20 million sponsorship deal with Everton via his company USM and double jeopardy were taken into account.

However, the documents disclosed from the case held by the independent commission reveals that a ‘further hearing will follow’. It is over a sum of £6.56 million sum that is related to certain costs that club say are in relation to the new stadium being constructed.

The document said: “At a later time, the Commission will determine whether there has been any further breach of the PSR in respect of: (a) the retrospective capitalisation of £6,561,000 in FY21 and FY22 and (b) the capitalisation of interest relating to FY23, as alleged by the PL’s amendment. Accordingly, a further hearing will follow. It therefore remains to be determined whether Everton has exceeded the Upper Loss Threshold by any further amount regarding the interest capitalised in FY21, FY22 and FY23. We accept that this defers the resolution of part of this dispute. The Commission is acutely aware that there are many stakeholders – to name some: the PL, Everton, the Everton fans, all other -8- Premier League clubs, the public – interested in the speedy determination of these disciplinary proceedings. Nevertheless, in fairness to the parties in these proceedings, the Commission decided that the issues which remain cannot be dealt with in accordance with the timetable set out in the Standard Directions. The Standard Directions will not, therefore, apply to the remaining issues.”

The hearing isn’t expected to be heard until after the season ends and the same panel will be present.

On the matter, The Times’ Paul Joyce wrote on X (formerly Twitter): “As the decision records, there remains a dispute between the Premier League and Everton as to the status of certain costs that the club says are associated with its stadium construction. The League considers that these costs fall to be considered as a loss for the purposes of the PSRs. The club contends that these costs are not losses, given that they relate to the construction of the stadium and have been capitalised in their audited accounts. This issue, and the question of whether any additional sanction should be applied, will be resolved by the same Commission at a later date. It is unlikely to be before the end of the season.”