Everton could be in danger of having their points deducted as Premier League demands up to date accounts for all clubs.
According to a report from Daily Mail, Everton’s miserable start to the year could yet get worse as they are now running the risk of having their points deducted by the Premier League. They were due to submit their accounts for the 2020/21 season back in November, but they have failed to do so and are awaiting a clarification from the authority on how much losses can be offset due to impact of the COVID-19 outbreak.
Everton have registered a combined loss of over £260 million from 2017 and 2020, which breaches the Premier League rules that have capped losses over a three-year period to just £105 million.
Reports suggest Everton are set to register massive losses for the 2020/21 calendar, as the club have consistently underperformed in the Premier League. Most importantly, the emergence of the pandemic had led to huge losses in stadium revenue, and even TV revenue as football in England was halted for a considerable period of time.
Premier League had altered the spending rules in light of the pandemic, with the three-year assessment period extended to four. However, that is unlikely to be of any help for Everton, who are expected to register losses in excess of £100 million during the 2020/21 season.
The club’s losses could increase further after severing ties with Russian oligarch Alisher Usmanov. The cancellation of the sponsorship deals linked to his companies could reportedly see Everton lose around £300 million over the next 20 years.
While inconsistent form and lack of impactful performances on the pitch were major reasons behind Everton incurring massive losses, it is worth noting that the Toffees had spent quite a fortune on the market as well. Especially in 2017, Everton spent close to £200 million, only to finish eighth in the league and miss out on European football.
Although almost half of the outlay was covered by the sale of Romelu Lukaku, the club went on to spend around £100 million in the following summer. They ended up missing out on European football once again. In fact, the Toffees have not finished inside the top five since the 2013/14 campaign, despite splashing the cash in the market.
The Premier League rules state that breaching the spending guidelines could result in the deduction of points – a fate that had befallen Championship giants Derby County earlier this season. While any deductions are unlikely to be made before the end of the season, failing to provide the accounts could lead to potential relegation for a team that is already dawdling around the drop zone.