Everton is set to begin an appeal process in their fight against the 10-point Premier League penalty. The Toffees were previously hit with the punishment after an independent panel agreed with league officials that the club violated Profitability and Sustainability Rules (PSR). Everton submitted an official appeal of the ruling quickly after the points deduction was sent out.

The appeal hearings start Wednesday, Jan. 31, and continue for three days. Although these hearings will end on Friday, February 2nd, Everton will not immediately know the outcome of the appeal. Sky Sports is reporting that the Premier League will not announce a verdict until mid-February.

Due to the aforementioned points deduction, the Merseyside club now finds themselves in a relegation battle. The team currently sits 17th in the standings, just one point from the drop zone. Luton Town, the club just below Everton at the moment, also has a game in hand compared to the Toffees as well. If not for the punishment, manager Sean Dyche would have Everton sitting 12th in the table.

Premier League execs created formula to settle on points punishment

Following the penalty, the Toffees publicly declared their shock and disappointment in the ruling. The initial official statement by the club also denied that they “failed to act with the utmost good faith” regarding their cooperation in the investigation.

Nevertheless, the Premier League later claimed that Everton admitted to breaching the financial rules during a previous hearing. League laws currently state that clubs cannot lose over $130 million over three years. The panel ultimately ruled that the Toffees posted losses of nearly $154 million during this stretch.

The Premier League landed on the 10-point penalty by creating a specific formula. According to a reported statement by league chief Richard Masters, breaching PSR rules is an automatic six-point punishment. However, violating teams receive an additional one-point penalty for every $6.3 million they are over the $130 million. As the club was about $24 million over the limit, the Premier League subtracted the additional four points.

Appeal hearing outcome may influence second Everton charge

While Everton may have admitted to breaking the rules, they still believe that the punishment is too harsh. The Times is reporting that the club claims that they only exceeded these loss limits by $12 million. This is about half of what the Premier League charged Everton with. As a result, the Toffees will be looking to decrease their previous points penalty.

Everton, however, could face yet another points deduction. The Premier League charged the club, along with Nottingham Forest, with violating the PSR rules. As a result, the Merseyside club may pick up another significant points penalty. The outcome of the upcoming appeal hearing on the first charge will be critical in the club’s fight against facing another punishment.

The Merseyside team is already fighting relegation due to the first penalty. Another punishment could unfortunately be the final blow to Everton’s survival chances. Most of the attention regarding the spending rules is currently on Everton. Still, other clubs are worrying as well. Manchester City, along with Forest, face charges for breaking these financial laws from the Premier League.