The independent commission detailed Premier League chief Richard Masters’ position on Everton’s points deduction.
The Blues were docked 10 points after being found guilty of exceeding the Premier League’s threshold of £105m in losses by £19.5m. The punishment that was handed out to Everton for breaching the league’s profit and sustainability rules was unprecedented in top-flight football, surpassing the nine-point penalty given to Portsmouth for entering administration in 2010.
The final decision regarding the extent of Everton’s points deduction was made by an independent commission, as the Premier League does not have a fixed punishment for clubs who break its financial rules. However, the summary from the independent panel did detail Premier League chief executive Richard Masters’ idea of a starting six-point deduction, plus a further point for every £5m exceeding the £105m threshold, which is not in the league’s official guidelines..
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It was rejected by the panel, as adopting it would have prejudiced the case, but the statement does show how the Premier League would have chosen to deal with any club’s financial breaches, aside from any mitigating or aggravating factors. Masters first explained his thoughts in a witness statement in August, before clarifying in October that the Premier League was merely sharing its perspective with the commission, similar to EFL cases.
Addressing the idea suggested by Masters, the independent panel said: “The Commission recognises the attraction of a regulator imposing a structured formula that was required to be applied in breaches of a particular regulation. Such a structured formula would fully inform clubs of the consequences of PSR breaches - although that would deny the Commission the power, as a specialist tribunal, to approach the question of sanction in whatever way it considered to be appropriate to the individual case before it.
“Nevertheless, the Commission is concerned that the adoption by it of a structured formula such as is advocated by the Premier League would be inconsistent with the unrestricted powers conferred by Rules W50&51.
“We consider that it is not for a Commission to introduce such a structured formula even on a case by case basis. We consider that we are required by the Rules to hear and consider the mitigation, after which we have a wide discretion to impose any of the sanctions listed in Rule W51.”
The punishment handed out to Everton almost matched the Premier League’s preferred formula, given the club were found to have exceeded the limits by £19.5m. However, the independent panel admitted that it was possible for the league to adopt that approach in future cases, though it would limit the options available to an independent commission: “If the Premier League wishes to impose a mandatory structured formula on a Commission dealing with PSR breaches, it can do so. In that event the Commission would be required to comply with those Rules. But as things stand at present that has not been done: the Commission has the wide discretion conferred by Rules W50&51.
“We therefore decline to adopt the structured formula proposed by the Premier League. We will determine the appropriate sanction according to all the circumstances of the case, including (as required by Rules W50&51) any mitigating factors.”
In their statement after the points deduction, Everton said "The club will also monitor with great interest the decisions made in any other cases concerning the Premier League’s profit and sustainability rules.”
Earlier this year, Manchester City were charged by the Premier League with more than 100 alleged breaches of its financial rules between 2009 and 2018.
