Two of Newcastle United & Liverpool's Premier League rivals at risk of points deduction after Everton

Premier League points deduction: Manchester City and Chelsea await to hear their fate following Everton's record punishment.

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Everton have been handed a record 10-point deduction in the Premier League for breaching Financial Fair Play rules - but what does this mean for the likes of Manchester City and Chelsea?

The points deduction leaves Everton in the relegation zone and would have been enough to relegate the club had it been imposed during the 2021-22 or 2022-23 campaigns.

Everton's Premier League points deduction confirmed

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A statement from the Premier League read:  “An independent Commission has imposed an immediate deduction of 10 points on Everton FC for a breach of the Premier League’s profitability and sustainability rules (PSRs).

“The Premier League issued a complaint against the club and referred the case to an independent commission earlier this year. During the proceedings, the club admitted it was in breach of the PSRs for the period ending Season 2021/22 but the extent of the breach remained in dispute.

“Following a five-day hearing last month, the commission determined that Everton FC’s PSR calculation for the relevant period resulted in a loss of £124.5million, as contended by the Premier League, which exceeded the threshold of £105million permitted under the PSRs. The commission concluded that a sporting sanction in the form of a 10-point deduction should be imposed. That sanction has immediate effect.”

Potential impact on Manchester City and Chelsea

Meanwhile, both Chelsea and Manchester City are under investigation for alleged financial offences.

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Earlier this year, Man City were charged with over 100 breaches of Premier League financial rules from the 2009-10 to the 2017-18 seasons. The treble-winners could face serious punishment with Everton's points-deduction setting a precedent for such breaches moving forward.

The case has been referred to an independent commission that will be able to impose a punishment in due course.

And just last week, it was revealed that Chelsea are under investigation after leaked files showed a number of payments worth 'tens of millions of pounds' over a decade to offshore vehicles belonging to former Blues owner Roman Abramovich. The value and prolonged period of the transactions appear to have benefitted Chelsea during the most successful spell in the club's history.

Abramovich sold Chelsea to Todd Boehly and Clearlake Capital in 2022 with the club's new owners voluntarily reporting that 'incomplete financial information' had been submitted under the previous regime, leading to a Premier League investigation.

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The new leaked files raise more questions as to whether Abramovich's Chelsea repeatedly breached financial rules for the club's benefit. If found guilty, a significant punishment could well be imposed.

What this means for other Premier League sides

Teams who have been relegated from the Premier League while Everton remained in the division while flouting financial rules may look to put together a case for some form of compensation.

Meanwhile, teams who have lost out on titles to Manchester City and Chelsea could also look to form a case if or when any punishments are imposed.

Everton's statement read that the club will 'monitor with great interest the decisions made in any other cases'.

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With Manchester City competing at the top of the Premier League table and Chelsea looking to return to Europe, teams in and around them in the table in addition to Everton will be taking a significant interest in any potential sanctions that may be imposed in the coming seasons.