Everton learned its potential penalty and points deduction should the Premier League and an independent commission find the Toffees guilty of breaching Financial Fair Play (FFP) rules. According to the Mirror, Premier League officials recommended the Toffees earn a 12-point slash for the violation. The Merseyside club currently sits 16th in the top-flight table with just seven total points.

Everton previously reported combined losses of about $450 million over the last few seasons. Premier League laws, however, limit these losses to around $127 million during this timeframe.

The proposed penalty would be the biggest of its kind in Premier League history. Portsmouth previously received a nine-point deduction for financial issues back in 2010. Middlesborough picked up a three-point penalty in 1997 as well. However, the latter case involved the team postponing a match on short notice due to being short on players. Both of these clubs suffered relegation from the top flight.

The hearing regarding Everton’s financial situation has begun. Still, an official ruling in the case will not come until November. An independent commission joins the Premier League and Everton in the meetings. Nevertheless, it seems as if the Premier League wants to make an example of the Toffees.

If the 12-deduction goes into effect, it would be a severe warning to other teams potentially fighting FFP allegations in the future. It would also put Everton in a fairly deep hole to climb out of. Assuming the penalty is handed out, the Toffees would currently have -5 points in the standings. Although it is still very early in the season, the club would already be 10 points away from safety.

Merseyside club barely avoided the drop over the last two seasons

Everton has narrowly avoided relegation in each of the last two campaigns. The club finished 16th in the standings, four points from the drop zone, in May of 2022. Everton was in the relegation zone as late as April, but back-to-back wins against Chelsea and Leicester City in early May ultimately helped save the team.

Everton has been one of the worst teams in the Premier League over the last two years.

Everton has been one of the worst teams in the Premier League over the last two years.

Everton has been one of the worst teams in the Premier League over the last two years.

The Toffees then finished two points from relegation following the completion of the 2022/23 season. This came as the club sat 19th with just four matches remaining on the schedule. Nevertheless, head coach Sean Dyche managed to collect two victories in their last four games to earn a spot in this season’s top flight. Had Everton picked up a points deduction in either of the two campaigns, the Toffees would have suffered relegation.

Everton also faces additional financial headaches as well

Not only is Everton facing a possible points deduction, but financial hits are looming as well. If found guilty, the Toffees will also receive a fine to go along with the points deduction. The issues, however, do not stop there. Three recently relegated clubs have also threatened Everton with a lawsuit.

Burnley, Leeds, and Leicester have joined forces to potentially sue Everton for over $360 million. The trio has even already written to the Premier League to inform them of their intentions. Burnley suffered relegation in 2022 after finishing four points behind Everton. Leeds and Leicester, on the other hand, currently play in the Championship after dropping back in May. All three of these teams claim that Everton avoided relegation by violating the FFP laws.