Everton are at risk of a points deduction in the Premier League after suffering significant financial losses, according to reports.
Monday’s 5-0 defeat away to Tottenham has left Frank Lampard’s side just a point above the relegation zone, although they have a game in hand over Burnley, and two in hand over Watford and Norwich City.
MailOnline report that Everton are now preparing to negotiate with the Premier League as they are expected to post losses in excess of £100 million in their latest financial accounts which are due to be submitted this month.
The report claims that between 2017 and 2020, Everton posted combined losses of over £260m, which is in breach of Premier League’s limit of £105m over a three-year period.
After announcing the rules in 2013, former Premier League chief executive Richard Scudamore warned that clubs who go over the losses limit would face a points deduction.
‘If people break the £105m we will look for the top-end ultimate sanction range – a points deduction,’ Scudamore said.
No Premier League club has been found in breach of those financial rules so far.
The profit and sustainability rules have been altered in response to the coronavirus pandemic as the three-year assessment period has been extended to four years, while an average will taken over the two financial periods affected by Covid.
Everton, meanwhile, also saw their finances hit last week after they suspended their sponsorship deals with three companies owned by Alisher Usmanov, who has now been sanctioned by the UK Government.
Russian firm USM have been paying £12m per year to sponsor the team’s training ground.
In January, Everton completed five first-team signings, including a £16m deal with Rangers for Nathan Patterson and a £17m move for Ukrainian defender Vitaliy Mykolenko from Dynamo Kyiv.
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