Everton has been fined 10 points, the most severe penalty ever imposed on a Premier League side, for violating financial fair play rules. The decision puts the team in second place, two points from safety.

Everton stated they were “shocked and disappointed” by the decision, which came after an independent commission probe, and that they will appeal. The appeal will be resolved before the season ends.

Leeds, Leicester, and Burnley have previously written to Everton’s prospective new owners, 777 Partners, threatening to sue for damages if a guilty finding is returned. Everton nearly avoided relegation in both of the previous two seasons.

Southampton, another relegated club, has also threatened legal action, which may cost tens of millions of pounds. If the allegations are upheld, the price for 777 Partners will be reduced due to built-in clauses relating to the purchase of Everton.

After an assessment of Premier League clubs’ financial records for the 2021-22 season, verton were reported to the commission. Burnley and Leeds complained to the Premier League last year, questioning whether Everton had broken the rules after incurring losses of £371.8 million over the previous three years. Everton has consistently denied any wrongdoing.

The Premier League allows clubs to lose a maximum of £105 million over three years, and clubs who violate its profitability and sustainability regulations (PSRs) can be penalized or deducted points.