Liverpool, England - Everton has been hit with one of the most extensive and damaging penalties in English Premier League history. The club was deducted 10 points for a violation of the EPL’s profitability and sustainability rules regarding the 2021-22 season. As a result of the decision, The Toffees have dropped from 14th place into relegation position at 19th. 

According to official League rules, clubs cannot exceed losses of £105m over a three-year period. Everton, however, showed that their losses amounted to £124.5m, a violation that the Premier League says warrants a point deduction set to take place with “immediate effect.”

The Liverpool-based side is expected to appeal the decision, with a ruling being made before the conclusion of the current season. The penalty could put The Toffees in a precarious situation as the club has barely staved off relegation for multiple seasons and has been surrounded by an endless list of “takeover” rumors. 

Unfortunately for Everton, discussions of the club's possible financial violations have been numerous over the years. Last season, Burnley and Leeds contacted the Premier League with questions about Everton's monetary standing. Now that Everton has been officially penalized, those same squads could be joined by Leicester City in filing a massive lawsuit against The Toffees. Both Leeds and LC were relegated in 2022-23, while Everton managed to stay afloat. 

Everton is just one of the EPL organizations being investigated for a violation of financial rules. The League’s decision in this case could be a sign of what’s to come for Manchester City, who have been cited with possibly violating over 100 regulations.