The Liverpool-based soccer club Everton F.C. has suffered a loss of $55.12 million for the 2021-22 season, according to their financial results revealed on March 31st, in the midst of an investigation into alleged breaches of Premier League financial fair play rules.
Last week, the Premier League referred the Everton Football Club to an independent commission to review the league’s profitability and sustainability rules for the period of time ending with the 2021/22 season. In accordance with the regulations, a club may sustain losses of up to £105 million over a period of three years before being subject to sanctions, which may include the deducting of points. However, clubs were permitted to discount losses brought on by the coronavirus pandemic.
🚨 Everton are at risk of a points deduction THIS SEASON for breaking profit and sustainability rules.
Rival clubs have demanded an expedited case!
(Source: @MailSport) pic.twitter.com/SqBgnMztpR
— Transfer News Live (@DeadlineDayLive) March 31, 2023
The Merseyside Club claimed that the crisis had an impact on player trading as well as matchday income. They have strongly denied the accusation of non-compliance with the rules.
“The club is confident it remains compliant with all of the Premier League’s financial rules and regulations and has always provided information to them in an open and transparent manner,” chairman Bill Kenwright said in a statement.
“That the club has always acted in good faith simply intensifies the disappointment experienced at last week’s news – but, as already stressed, we will robustly defend our position.”
Financial fair play regulations are designed to stop clubs from running up big losses through spending on players as well as ensure sponsorship deals are genuine commercial agreements.
Everton are at risk of dropping out of the Premier League
Amidst all the scrutiny, Everton are now at risk of being relegated from the Premier League for the first time in 69 years.
The Toffees are currently 17th in the table, with just 26 points accumulated from 28 games. Leicester City, West Ham United, and Southampton make up the bottom 3 with minuscule differences in points between them.
https://twitter.com/Sambob180/status/1642222008258756613
Everton’s auditors have made mention of the club’s potentially precarious league position, one point above the bottom three, casting doubt on chairman Barrett-Baxendale’s optimism.
“Should the club be relegated, it will require additional financial support from its majority shareholder,” they said in the report.
“These matters indicate that a material uncertainty exists that may cast significant doubt over the group’s ability to continue as a going concern.”
This week’s scheduled stadium drone update will be with you on Sunday – on schedule… just like the project itself. 😉 pic.twitter.com/PG4Ahw4S2W
— Everton Stadium (@EvertonStadium) March 31, 2023
Everton are set to face Tottenham in a home clash next Tuesday. The Toffees must claim a victory in order to avoid dropping down to the bottom 3.
