What are the Premier League’s PSRs and why have Everton been docked points?

Everton’s punishment for breaching the Premier League’s profit and sustainability rules was finally revealed on Friday, with the Toffees rocked by an immediate 10-point deduction.

The ruling, handed down as the result of a five-day hearing of an independent commission last month, will be appealed by the Toffees, who said they were “shocked and disappointed” by the “harshness and severity” of the punishment in a statement.

The Premier League says the rules are “designed to promote financial stability and sustainability amongst Premier League clubs by limiting the losses that Premier League clubs can incur”.

All Premier League clubs are assessed against the rules each year, with compliance based on figures covering a rolling three-year period.

A maximum loss of £105million is permitted across that period, and the commission found Everton to have exceeded that sum by £19.5m in the period ending with 2021-22.

Clubs can claim ‘add backs’ towards their losses, which are costs the Premier League deems to be in the general interest of the club and football. For example, investment in club infrastructure, community projects, women’s football or youth development can be claimed as ‘add backs’.

For the 2019-20, 2020-21 and 2021-22 seasons, clubs were also entitled to claim losses which were a direct result of the COVID-19 pandemic as ‘add backs’.

Furthermore, the huge financial impact of COVID-19 led the Premier League to average out figures from the 2019-20 and 2020-21 campaigns and treat them as one season. So in Everton’s case, they were being assessed on a period starting with the 2018-19 season and ending with 2021-22.

The Premier League says fines, points deductions and “other sporting sanctions” are among the potential punishments for any club found guilty of breaching the rules.

Everton have pledged to fight the ruling, with the independent commission’s full written reasons for the penalty saying any appeal process should be concluded before the end of this season.



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