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Everton lodge appeal against two-point deduction for second PSR rule breach

Everton lodge official appeal against their two-point deduction for a second breach of the Premier League’s Profit and Sustainability Rules; watch Chelsea vs Everton on Monday Night Football, live on Sky Sports Premier League from 6.30pm; kick-off 8pm

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Sky Sports News chief reporter Kaveh Solhekol explains how it might play out for Everton after the club officially appealed against their two-point deduction

Everton have officially lodged an appeal against their two-point deduction for a second breach of the Premier League’s Profitability and Sustainability Rules (PSR).

The Toffees, who were docked six points earlier this season for breaking PSR rules in the assessment period up to the 2021/22 season, were handed another penalty last week for the three-year cycle to 2022/23 after admitting a breach of £16.6m.

The appeal hearing over the second points deduction is expected to take place in the next couple of weeks.

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In a statement, the Premier League said on Monday: "An appeal board has been appointed to hear the case after the club lodged the appeal to the chair of the judicial panel today.

"The case will be heard on an expedited basis, in accordance with the league's standard directions.

"For clarity and certainty for all clubs and fans, the Premier League will be seeking to have the appeal resolved urgently, with the outcome confirmed in advance of Sunday May 19 - the last day of this season."

Sean Dyche's 16th-placed side sit two points above the drop zone.

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Everton found out in February that their appeal against the punishment dished out in November for their first PSR breach had been reduced from 10 points to six.

The appeal board rejected seven grounds for mitigation put forward by the club, but did find the original commission made legal errors.

In this month's points deduction, according to the written reasons published by the independent commission handling the case, Everton breached their allowed spending of a £105m loss over three seasons by £16.6m.

The Premier League and the commission initially wanted to impose a five-point deduction on the club, but it was reduced to two on mitigating factors.

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On this edition of Back Pages Tonight, the Telegraph's Jason Burt says the "rules aren't working" after Everton received a further two-point deduction

Last month fellow Premier League strugglers Nottingham Forest were punished for their own PSR breach, leading them to be docked four points.

The Premier League said Forest admitted breaching those rules by £34.5m above their permitted threshold of £61m.

777 agree Extension to loan payment agreement

Sky Sports News understands that an extension of the MSP loan to Farhad Moshiri has been signed to enable 777 Partners to settle the moneys owed to MSP, with a longer term agreement also being negotiated.

Exact terms of that extension have not been disclosed, but will be a question of weeks not months.

777 say they remain confident of meeting the Premier League’s other preconditions to passing the Owners' and Directors' test.

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'Appeal makes sense - but more trouble could be brewing'

Sky Sports News chief reporter Kaveh Solhekol:

"Being in the Premier League is so important, it is so lucrative. At the moment, Everton have been deducted two points and if they appeal, that may be reduced.

"It's a no-brainer. Last time they appealed, they got it down from 10 points to six points.

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Sean Dyche says he has the same reaction to Everton's second points deduction and hopes it can pull the players and supporters together again

"Obviously the most important thing is to win your games and make sure you get enough points to avoid relegation, but if you were to get relegated and you hadn't appealed, I don't think you'd forgive yourself if you were associated with Everton.

"If you look at the Premier League rulebook, it says any appeal to do with a PSR case has to be dealt with by May 24 - five days after the end of the season.

"No one wants to go into the end of the season now knowing what is happening with these points deductions and with appeals.

"Even though the rulebook says May 24, there's a sense of urgency and everyone involved in the process will do whatever it takes to make sure it takes place before the end of the season.

"There's another aspect to this which is all to do with interest payments on their new stadium that is getting built. That is something the commission are looking into and have said is not going to be dealt with by the end of the season.

"That's probably going to be dealt with in the summer so there could be a further points deduction down the line."

Carra: Everton are where they are because of poor ownership

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Jamie Carragher feels Everton are where they are because of poor ownership and believes this should be the club's fans' focus over the points deduction

Jamie Carragher on Monday Night Football:

"I think the takeover and who the owners will be is much more important [than the points deduction issue] in the future of Everton. I put most of the blame for the points deduction at the club's door in terms of what the ownership has done over the last few years, but I understand the Everton fans are frustrated at it, certainly with the Premier League, and there are reasons why.

"The fact there have been different panels looking at different clubs... The points initially, the 10 points, I get the frustration there. In the last few days when you see what Chelsea have done in terms of selling hotels and basically selling them to themselves to make sure they pass PSR, it's a bit of a joke and you can understand the frustration from Everton and Nottingham Forest supporters on the back of that.

"However, the reason Everton find themselves where they are is because of poor ownership. They have an owner right now in Farhad Moshiri that has basically gone AWOL. It's like he's gone and is not in charge of the club, and there's a group, 777 Partners, who are basically propping up the club. They are paying £20m to £25m a month to keep the club afloat and keep them going.

"But on September 15, Moshiri came out publicly and basically said he's going to sell his 94 per cent share of the club, and his preferred partners and the people to take over the club were 777 Partners. He said that process would take eight to 12 weeks. Seven months to the day later, you are still scratching your head and thinking why hasn't this happened.

"The Premier League are probably in a position right now where they are looking at them and asking whether they are fit and proper owners and have they actually got the money. If they wanted to take over there were four stipulations the Premier League gave them and they haven't met them, and at midnight [on Tuesday], Everton are due to pay MSP £158m. That doesn't look like it is going to happen.

"The problem is that if the Premier League are looking at 777, they will also be worrying about if they say no to them. Who is actually going to keep Everton going right now?

"The frustration about the points is this season and hopefully for Everton they will move out of that.

"I am Liverpool but I am really passionate about Everton and football in the city of Liverpool. We need two Premier League clubs and we need whoever the owner is at Everton, whether it is 777, Moshiri stays or someone else to finish the stadium. That stadium will transform Everton Football Club and it will be fantastic for the city of Liverpool as well.

"I think Everton will stay up so the points deduction will be over at the end of the season, but the new ownership is much more important than a points deduction, and it needs to be sorted out right away.

"People getting involved in the points deductions need to be getting involved in this as well, finding out what is going on and why an owner has gone AWOL."

Forest's PSR appeal to be heard next week

Nottingham Forest's appeal against their punishment for breaking the Premier League's financial rules will be heard next week.

Forest were deducted four points by an independent commission on March 18 for overspending by £34.5m over the three seasons to the end of the 2022/23 season.

A new three-person independent commission will hear their appeal in the week beginning April 22.

According to the Premier League rulebook, the appeal process has to be completed by May 24 - five days after the end of the season - but it is expected that the results of any appeals will be known before the final matchday.

Forest are 17th in the table, one point above the relegation zone with five games to play. Their next match is against Everton at Goodison Park on Sunday, live on Sky Sports.

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Points deductions here to stay for PL financial breaches

Clubs who break the Premier League's financial rules can still expect to be given significant points deductions in the future, despite a proposal to replace points penalties with a fine.

At the latest shareholders meeting of Premier League clubs last Thursday, the future of squad cost controls was one of a number of key issues on the agenda.

In principle, they agreed to introduce new financial rules. It would likely mean clubs will be limited to spending 85 per cent of their revenue on transfers, wages and agents' fees.

Clubs voted to progress with new squad cost ratio rules to replace current Profitability and Sustainability Rules (PSR). Two votes were on proposed new rules, and one was unanimous. A final vote on whether to adopt new rules will be taken at the Premier League's AGM in June.

PSR rules will still be in place for next season. If new rules are adopted at the AGM, there would be a transition period next season where the new rules would shadow current PSR rules.

But perhaps crucially, the sanction of points deductions will remain for next season and will also remain as part of the new squad cost ratio rules.

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