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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 reduced from 10 points to six today, breathing new life into their bid to avoid relegation from the Premier League.

The Toffees were hit with the sanction on November 17 after a £19.5million overspend of the PSR guidelines. The club admitted wrongdoing but disputed the size of the breach, insisting it was only £7.9m.

They subsequently appealed after describing the punishment as “disproportionate and unjust”.


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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.

A statement today from the governing body read: “Everton FC appealed the sanction imposed against it on nine grounds, each of which related to the sanction rather than the fact of the breach, which the club admitted.

“Two of those nine grounds were upheld by the Appeal Board, which has substituted the original points deduction of 10 for six.

“This revised sanction has immediate effect and the Premier League table will be updated today to reflect this.”


Jon Fisher
Jon Fisher
Jon has over 20 years' experience in sports journalism having worked at the Press Association, Goal and Stats Perform, covering three World Cups, an Olympics and numerous other major sporting events.

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