Everton received good news on Monday morning when the Premier League reduced its points penalty to just six. Previously, the league charged the Toffees with a 10-point deduction for violations of the profitability and sustainability (PSR) rules. Everton’s net losses over three years exceeded the league’s maximum of $134 million. As a result, the points penalty sank the Merseyside club into the relegation zone.

Four draws in five games while other clubs struggled mightily meant Sean Dyche’s side pulled out of the drop zone. However, just one point and goal differential put Luton Town beneath Everton. Now, there is a five-point gap between Everton and the bottom three. Brentford and Nottingham Forest are both closer to relegation. Therefore, Everton has some breathing space when it comes to retaining its long-standing status in the Premier League.

The points penalty that now stands at six points connects through the end of the 2021/22 campaign. While other clubs have spent more and sold less in the transfer market, Everton had to contend with the development of a new stadium. The club did not appeal against the fact of the violations in profitability and sustainability rules with rampant net losses at the club. Rather, it appealed the severity of the sanction, hence why it has been reduced from 10 points down to six.

Everton may face another points penalty

In the immediate view, this is certainly a victory for Everton. Its relative place in the table is a major improvement when considering the importance of four points. Even though six points is a major deduction based on current Premier League standings, things are not nearly as bleak as they were earlier in the season.

Yet, not all is positive at Goodison Park. The club is facing other charges in relation to profitability and sustainability rules. In January, the Premier League charged Everton and Nottingham Forest with violations of PSR. For Everton, it is an extension of the construction of a new stadium at Bramley-Moore Dock. Nottingham Forest is more traditional, as it spent heavily on transfers upon its return to the Premier League.

Regardless of the origin, the looming threat of a points deduction has a new fold that adds issue to both Nottingham Forest and Everton. According to Sky Sports reporter Kaveh Solhekol, the Premier League now has a precedent for issuing points penalties for these violations of Financial Fair Play. For example, if the league assigns six-point penalties to both Everton and Forest, the relegation outlook changes greatly. For example, six-point penalties for both Forest and Everton would plunge Forest into the relegation zone, and Everton would be one point off the drop. Luton Town would rise from 18th in the table to 16th.

League aims for announcement on sanctions before end of current campaign

There is no finite timetable for when the ruling comes down for Everton and Nottingham Forest. The Premier League wants to hand out the penalties before the season goes final. Yet, this could be after the last matchday, according to some reports. As a result, the penalties could be massively taxing for the teams to determine which clubs stay in the Premier League.