Everton have denied suggestions they could face the threat of a points deduction through administration, after reports claimed the Toffees could be forced into a firesale to avoid 'going bust'.
Earlier this month Leicester City secured promotion back to the Premier League, but The Telegraph has reported that the Foxes could be docked between six and 15 points for breaching Premier League financial rules.
In March, Leicester were charged with breaching the Premier League’s Profit and Sustainability Rules over a three-year period ending in 2022-23.
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And in addition to Leicester, Everton have been rumoured as another club who could start the new season on minus points.
Reports in the national press have indicated that Everton are at risk of receiving a deduction of their own unless they manage to sell several players and balance the books.
These are claims strongly refuted by Everton sources amid previous suggestions that a points deduction could be enforced heading into the 2024/25 season owing to an outstanding issue that the previous commission did not resolve at the time.
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This relates to a disagreement regarding whether interest payments on loans provided for Everton’s working capital are due to stadium costs or club operations.
Like other Premier League clubs, the Merseysiders have until June 30, the date that marks the end of the club's financial year and the end of a three-year Profit and Sustainability period, to fall in line with regulations around spending limits.
Everton were docked eight points last season for breaking the Premier League's Profitability and Sustainability Rules, having lost £371.8m over a three-year period.
The new cycle began with Everton already £89.1m in the red, meaning they can only afford to lose a further £15.9m in losses before they break the £105m cap.
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Everton's situation has been worsened by the apparent collapse of the £500m takeover by 777 Partners.
A share purchase agreement set out between current owner Farhad Moshiri and 777 eight months ago ends on Friday.
Everton are currently £583m in debt, with the debt to 777 rising to £200m last month after they provided a further £15m to cover wages and stadium costs.
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The likes of Jordan Pickford, Jarrad Branthwaite, Amadou Onana and Dominic Calvert-Lewin have been touted as names that could be sold to raise funds and director of football Kevin Thelwall has already moved to reassure fans over the club's approach this summer.
“The reality is, given the regulations in place and the club’s current financial position, we have to trade well," he is on record as saying.
“Whilst we want to ensure the team is as competitive as possible, we cannot lose sight of our central objective to protect the long-term stability of the club.
“That does mean players will be sold, and also that every tool at our disposal will be used to secure new additions to the squad, including utilisation of the loan market.”
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A previous version of this article indicated Everton could face the threat of administration and we acknowledge these claims were unsubstantiated.
Topics: Premier League, Leicester City, Everton, Football, FFP
Alex Brotherton