Everton have been hit with an unprecedented 10-point penalty after being found to have “taken chances” with the Premier League’s financial rules.
An independent commission found the club’s desire to improve their on-pitch performance had resulted in them acting “irresponsibly” and exceeding permitted losses under the league’s profitability and sustainability rules (PSR).
The points deduction drops Everton to 19th in the table and leaves major question marks over whether a sale of the club by current owner Farhad Moshiri to an American investment firm, 777 Partners, will proceed.
The club immediately indicated their intention to appeal against the sanction. It is understood the appeal will be heard during the course of the current season.
Everton could also now face compensation claims against them over the case.
The Premier League published a commission judgement from May which granted five clubs – Leeds, Nottingham Forest, Southampton, Leicester and Burnley – 28 days from Friday to inform the commission of their intention to pursue a compensation claim.
None of those clubs have so far commented on this matter.
The Premier League’s PSR permit losses of £105million over a three-year period. Everton’s losses up to 2021-22 were found to be £124.5million, exceeding the limit by £19.5million even accounting for allowances made for the Covid-19 pandemic.
The club put forward various items they felt should be excluded from the PSR calculation, including interest costs related to the construction of their new stadium at Bramley-Moore Dock, the portion of the club’s transfer levy related to youth development and the £10m lost on the club’s decision not to seek damages against a player whose contract was terminated in 2021.
Everton also argued that a depressed summer transfer market in 2020 owing to Covid-19 reduced the revenue they would have earned from player sales. They also said they had lost out on a £200m stadium naming rights deal with USM as a result of Russia’s invasion of Ukraine and the subsequent sanctions imposed by the British Government. USM is a conglomerate whose single largest stakeholder is Russian billionaire Alisher Usmanov.
However, the commission concluded: “The cause of Everton’s PSR difficulties was the fact that it overspent (largely on its purchase of new players and its inability to sell other players), and because it finished lower in the league than it had projected in FY 2022 (16th against the projected 6th – causing a loss of expected income of c.£21 million).
“Everton’s understandable desire to improve its on-pitch performance (to replace the non-existent midfield, as Mr Moshiri put it in evidence) led it to take chances with its PSR position: those chances resulted in it exceeding the £105 million threshold by £19.5 million.
“The position that Everton finds itself in is of its own making – it is Everton’s responsibility to ensure that it complies with the PSR regime. The excess over the threshold is significant. The consequence is that Everton’s culpability is great.
“We take into account the fact that Everton’s PSR trend over the relevant four years is positive, but cannot ignore the fact that the failure to comply with the PSR regime was the result of Everton irresponsibly taking a chance that things would turn out positively.
“Further, Everton was less than frank in its dealings with the Premier League over the stadium interest issue.
“The reality is that Everton failed to manage its finances so as to operate within the generous threshold of £105m. Its mismanagement led to that threshold being exceeded by £19.5million.
“This was a serious breach that requires a significant penalty.”
The commission concluded that a sporting sanction was the only option for a club owned by a billionaire like Moshiri.
“A financial penalty for a club that enjoys the support of a wealthy owner is not a sufficient penalty,” the commission’s written reasons stated.
“We agree with the Premier League that the requirements of punishment, deterrence, vindication of compliant clubs, and the protection of the integrity of the sport demand a sporting sanction in the form of a points deduction. The issue is not the form of sanction, but its extent.”
The written reasons show Everton’s position was that any sanction imposed by the commission should be financial rather than sporting in nature, but said if it had to be a sporting sanction then a transfer ban would be more appropriate than a points deduction.
The club said in a statement: “Everton Football Club is both shocked and disappointed by the ruling of the Premier League’s commission.
“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.
“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.
“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 will also monitor with great interest the decisions made in any other cases concerning the Premier League’s Profit and Sustainability Rules.”
Portsmouth and Middlesbrough are the only other clubs to have been docked points in Premier League history. Pompey were hit with a 10-point sanction in March 2010 after entering administration while Boro’s three-point penalty in January 1997 related to a short-notice match postponement the previous month. Both clubs were relegated at the end of the season.
St. Louis City v Chicago Fire: Carnell warns against complacency amid unbeaten run
Bradley Carnell has warned his St. Louis City side they can't get comfortable despite a four-game unbeaten run.
Carnell's men last lost in March, since winning one and drawing three to leave St. Louis ninth in the Western Conference, just three points behind sixth-placed Austin FC.
As his team prepares to host the Chicago Fire this weekend, Carnell has cautioned his players not to become complacent.
"We can speak so many nice positives, especially with our three clean sheets in four and there are so many good moments," Carnell said.
"But I also don't want to get comfortable with that. I don't want to be used to getting draws. I don't want to hype up getting ties."
Carnell's side will look to extend their unbeaten run against a Fire team winless in four, currently 13th in the East after a poor start.
Chicago head coach Frank Klopas hopes his team don't lose faith, telling reporters: "Our focus is to continue to stay positive with the group.
"It's a process of evaluating and looking at how we can improve as a team, and then making sure once we analyse the games we look at certain things we did well and our mistakes to look to improve.
"It's a long season. I feel the team has been playing well, but we have to find a way to get points."
PLAYERS TO WATCH
St. Louis City – Joao Klauss
No St. Louis player has managed more MLS goal contributions than Klauss so far this term, scoring three and adding an assist. He will likely lead the line on Saturday and will hope to score the goals that start turning draws into wins.
Chicago Fire – Brian Gutierrez
Despite his team's poor collective start, 20-year-old midfielder Gutierrez has performed well and leads his team with three MLS goals so far this season, while also registering an assist. He will look to build on that and try to turn his side's fortunes around, starting this Saturday.
MATCH PREDICTION – ST. LOUIS WIN
St. Louis have kept clean sheets in three of their last four matches, including in the scoreless draw with the Houston Dynamo last time out. St. Louis had managed just two clean sheets in their previous 23 matches in all competitions dating back to last July.
The Fire, meanwhile, have failed to score in four straight matches. This is the fifth time Chicago have gone four or more consecutive league matches without scoring since the start of the 2021 season.
Six of St. Louis City's last eight matches have ended in draws, but home advantage should be enough to see off a struggling Chicago team on Saturday.
OPTA WIN PROBABILITY
St. Louis: 55.5%
Chicago: 19%
Draw: 25.5%
LA Galaxy v Real Salt Lake: Vanney encouraged ahead of top-of-the-table tussle
Greg Vanney believes the LA Galaxy are in a good spot both physically and mentally ahead of Saturday's clash with fellow Western Conference high-fliers Real Salt Lake.
The Galaxy sit third in the West through 11 matches of the season, though they have failed to win back-to-back road games against Austin FC (0-2) and the Seattle Sounders (0-0).
They are, however, unbeaten in all four of their home league games this term (two wins, two draws), and Vanney is looking forward to returning to Dignity Health Sports Park next time out.
"Physically, first and foremost, we're in a pretty good spot. We have a few guys coming back from issues that were pretty minor," Vanney said.
"It's good. We've been able to stay in that space for a while and now we're going into a busy part of the schedule we can make some choices about how we want to attack the week.
"Where are we mentally? We're good. It's nice to be home, it's a challenge to play a lot of games on the road early doors.
"We like the spot we're in and we want to keep building, but we've got to get through this tough stretch of games."
Real Salt Lake are top of the Western standings with 21 points, only losing twice in 11 league games this year.
However, they were dumped out of the U.S. Open Cup by New Mexico United on Wednesday, Pablo Mastroeni shuffling his pack for a 4-2 road loss.
"We completely tuned out," Mastroeni said after watching his team go 2-0 down within 20 minutes.
"The emotion is like, 'poor me,' and when you operate from that space, you can never think reasonably."
PLAYERS TO WATCH
LA Galaxy – Gabriel Pec
The Galaxy (12 shots) and Seattle (19) combined for 31 shots in their scoreless draw last time out.
Pec – who has two goals in 10 league appearances since joining the Galaxy in the offseason – recorded six of his team's attempts, but only hit the target once. He will be targeting an improvement here.
Real Salt Lake – Cristian Arango
Arango is the first Real Salt Lake player to contribute to at least one goal in five straight regular-season away matches, recording four goals and five assists during his streak.
He is just the second player since the start of last season to record a goal contribution in five straight MLS away matches, after the Columbus Crew's Cucho Hernandez.
MATCH PREDICTION – LA GALAXY WIN
The Galaxy have lost only one of their last 13 home matches against Real Salt Lake (nine wins, three draws) including going unbeaten through the last seven in a row.
The last two meetings in Carson have both ended level, though, after the Galaxy won nine of the previous 11 (one draw, one defeat).
However, Vanney's team have only lost one of their last 14 regular-season home matches dating back to last June, winning six and drawing six while averaging 2.2 goals per game throughout this run.
OPTA WIN PROBABILITY
LA Galaxy – 44.8%
Real Salt Lake – 27.8%
Draw – 27.4%
Leverkusen reach Europa League final and stretch unbeaten run with late show
Bayer Leverkusen reached the Europa League final and stretched their remarkable unbeaten run to 49 games on Thursday, Josip Stanisic scoring seven minutes into stoppage time in a dramatic 2-2 draw with Roma.
Having won last week's first leg 2-0 in Italy, Leverkusen were strong favourites to advance to this month's final in Dublin, though two Leandro Paredes penalties left them facing up to the prospect of extra time.
Paredes halved Leverkusen's aggregate lead on the stroke of half-time after Jonathan Tah fouled Sardar Azmoun, then repeated the trick following a bizarre handball from Adam Hlozek shortly after the hour mark.
However, Roma's hearts were broken as goalkeeper Mile Svilar – who was otherwise outstanding – failed to claim a routine corner and it bounced in off the unfortunate Gianluca Mancini with eight minutes of the 90 remaining.
Rather than sitting back at 2-1 up in the tie, Leverkusen chased a leveller in order to preserve their unbeaten record across all competitions this season.
It was yet another last-gasp effort that kept that record intact, with Stanisic firing into the bottom-left corner after being played through by Granit Xhaka.
Xabi Alonso's team are now unbeaten in 49 games in all competitions, breaking Benfica's previous European top-tier record of 48 matches, set between 1963 and 1965.
Leverkusen will face another Italian side in the showpiece game, after Atalanta crushed Marseille 3-0 in Bergamo to seal a 4-1 aggregate win in the other semi-final.
In-form striker Gianluca Scamacca had already rattled the crossbar when La Dea took the lead, with Ademola Lookman's strike deflecting in off the unfortunate Samuel Gigot.
Lookman then turned provider as Atalanta stretched their advantage seven minutes after the break, teeing up Matteo Ruggeri for a rasping finish into the top-right corner.
Gian Piero Gasperini's men were able to add some gloss to the scoreline at the death, with El Bilal Toure's pinpoint finish giving Pau Lopez no chance to round off a dominant win.
SportsMax is the Caribbean sports channel of choice, committed to providing sporting content of the highest quality to the Caribbean, delivered by a team of highly innovative, passionate and qualified professionals.
(876) 619-7629
digitalmedia@sportsmax.tv
