Everton have received a 10-point deduction from the Premier League over FFP violations.
Sean Dyche's side currently sit in 14th place in the division, having picked up 14 points from 12 games. They have won two of their last three games.
A deduction - which would make Everton only the second team, after Portsmouth, to be deducted points in Premier League history - would drop them into the relegation zone.
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Goal's Joe Strange reported that the Toffees were set to receive a 10-point deduction, which would leave them in 19th place on four points. Only Burnley's inferior goal difference would keep them from the bottom of the table.
That punishment has now been confirmed by the Premier League, who have said in a statement: "An independent commission has imposed an immediate deduction of 10 points on Everton FC for a breach of the Premier League's Profitability and Sustainability Rules (PSRs).
"The Premier League issued a complaint against the club and referred the case to an independent commission earlier this year.
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"During the proceedings, the club admitted it was in breach of the PSRs for the period ending Season 2021/22 but the extent of the breach remained in dispute.
"Following a five-day hearing last month, the commission determined that Everton FC's PSR calculation for the relevant period resulted in a loss of £124.5 million, as contended by the Premier League, which exceeded the threshold of £105 million permitted under the PSRs.
"The commission concluded that a sporting sanction in the form of a 10-point deduction should be imposed. That sanction has immediate effect."
Other potential punishments for the Toffees were a fine or transfer embargo, but the Premier League has decided to issue them with the deduction.
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The Athletic's David Ornstein has reported that Everton are planning to appeal.
In a club statement, Everton say they are 'shocked and disappointed' by the ruling.
They believe 'the Commission has imposed a wholly disproportionate and unjust sporting sanction', and have confirmed their intention to appeal the decision.
The statement adds: "Everton maintains that it has been open and transparent in the information it has provided to the Premier League and that it has always maintained the integrity of the process.
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"The Club does not recognise the finding that it failed to act with the utmost good faith and it does not understand this to have been an allegation made by the Premier League during the course of proceedings.
"Both the harshness and severity of the sanction imposed by the Commission are neither a fair nor a reasonable reflection of the evidence submitted.
"The Club will also monitor with great interest the decisions made in any other cases concerning the Premier League's Profit and Sustainability Rules."
What does the Premier League table look like now?
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While the Toffees' deduction puts them in the relegation zone pending appeal, they are only two points away from Premier League safety.
Luton move up into 17th, with six points, while Sheffield United are in 18th on five points.
Therefore, a win over Manchester United next Saturday could lift Dyche's side out of the bottom three.
The current bottom six is as follows:
- 15. Fulham (12pts)
- 16. Bournemouth (9pts)
- 17. Luton (6pts)
- 18. Sheffield United (5pts)
- 19. Everton (4pts)
- 20. Burnley (4pts)
More to follow.
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Featured Image Credit: GettyTopics: Everton, Sean Dyche, Premier League