Everton withdraw appeal against two-point deduction but further penalty threat looms

Everton have withdrawn their appeal against their latest two-point penalty for breaching Premier League Profit and Sustainability rules.

A hearing was due to begin next week, with legal representatives arguing to another commission that the second punishment imposed on the club this season should be reduced or withdrawn.

However, with Everton’s Premier League safety now secure, the club has taken the pragmatic view that an appeal is unnecessary and the penalty has been formally accepted.

When Everton first vowed to take action against the decision of the independent commission last April, there were fears the ruling would have serious consequences for Sean Dyche’s survival efforts.

The club released a statement in the immediate aftermath promising a legal response.

“Everton remains committed to working collaboratively with the league on all matters relating to PSR but is extremely concerned by the inconsistency of different commissions in respect of points deductions applied,” they said at the time.

“The club and its legal representatives have begun the preparations to appeal the Commission’s decision.”

The two points related to Everton’s accounts submitted for a three-year period up to June 2023. Everton were previously docked 10 points for overspending in the three-year period up to June 2022, but that was reduced to six points after an appeal.

However, there remains an outstanding issue which was parked by the last commission related to an ongoing disagreement regarding whether the interest payments on loans provided for Everton’s working capital are due to stadium costs or club operations.

That issue is expected to be resolved before the start of next season, meaning the club already has a threat of a further points deduction in 2024-25.

Everton may have taken the view that another appeal had little chance of success. Nottingham Forest’s pleas were rejected last week, and they remain in the fight against relegation because of the four points they were docked for overspending.