As Everton Football Club faces the imminent verdict in its appeal against a 10-point deduction for alleged breaches of the Premier League’s profit and sustainability rules, speculation as to the impact of any punishment on the club has been rife.

Back in November 2023, Everton received the largest points deduction in the history of the Premier League after an Independent Panel imposed the sanctions following the club’s admission that it was in breach of the Premier League’s profit and sustainability rules which limit losses over a three-year period to £105m.

The outcome of the appeal remains uncertain, leaving the Toffees currently situated in the Premier League relegation zone and facing the prospect of their first relegation since 1951.

According to information from The Guardian, the directors’ report and the audit conducted by Crowe UK LLP, revealed losses of £44.7m for the 2021-22 season. In the event of relegation to the Championship, the auditor’s report expressed concern, stating, “A material uncertainty exists that may cast significant doubt over the group’s ability to continue as a going concern.”

In a parallel scenario, Southend United faced a similar fate in August 2023 when the National League imposed a 10-point deduction for violating financial rules. This penalty was a consequence of the club’s failure to meet a deadline to settle a £275,000 tax debt. Throughout 2023, Southend United participated in multiple court hearings, receiving extensions to settle the debt but ultimately failing to make payment. The 10-point deduction means the club currently sit 19th in the National League and face the threat of another relegation.

Many have argued around the fairness of profit and sustainability rules and whether they ultimately stunt competitiveness rather than promote it but one thing is for certain, governing bodies are stepping up with sanctions for rule breakers which could impact the future of these clubs.

There will be many with one eye on the verdicts of these kinds of sanctions and appeals and their other eye on their own financial dealings.

In the face of such challenging circumstances, it becomes imperative for sport clubs to seek professional legal assistance to navigate the complex terrain of appeals against sanctions. At Farleys we understand the critical nature of these situations and stand ready to provide expert guidance and representation to sports clubs of all sizes, assisting them in appealing against sanctions from governing bodies.

Our seasoned legal team specialises in sports law and has a proven track record of successfully handling appeals, ensuring fair and just outcomes for our clients. We comprehend the intricate nuances of football regulations, including those pertaining to financial compliance, and employ a strategic approach to build compelling cases for our clients.

For confidential advice and representation please reach out to our sports law experts on 0845 287 0939, or contact us by email.