Newcastle United Premier League rivals rocked by Everon points deduction U-turn as Nottingham Forest watch on

Everton's 10-point deduction in the Premier League has been reduced following an appeal.

The Toffees were handed a 10-point deduction in November for breaching the Premier League's profitability and sustainability rules, plunging the club into relegation trouble. However, an appeal has seen the point deduction reduced to six.

It sees Sean Dyche's side move up to 25 points and 15th in the Premier League table, five points above the relegation zone. It leaves Luton Town four points from safety in 18th while Burnley and Sheffield United are now both 11 points adrift.

While the reduced points deduction provides Everton with a welcome boost, there is still a chance the club could be handed a further deduction after being charged with a second PSR breach in January. Nottingham Forest were also charged last month.

PSR limits Premier League clubs to £105million losses over a three-year period. While Everton's accounts revealed losses of £370million between 2018 and 2021, not all losses are taken into account.

Money invested into certain club infrastructure and academies are not included as part of the calculated losses. For example, Newcastle United have recorded losses of £155million over the previous three seasons but less than £105million of that is subject to PSR calculations.

Everton have hit out at the Premier League following its two PSR charges.

A club statement read: “The Premier League does not have guidelines which prevent a club being sanctioned for alleged breaches in financial periods which have already been subject to punishment, unlike other governing bodies, including the EFL. As a result — and because of the Premier League’s new commitment to deal with such matters “in-season” — the club is in a position where it has had no option but to submit a PSR calculation which remains subject to change, pending the outcome of the appeal.

“The club must now defend another Premier League complaint which includes the very same financial periods for which it has already been sanctioned, before that appeal has even been heard. The club takes the view that this results from a clear deficiency in the Premier League’s rules.

“Everton can assure its fans that it will continue to defend its position during the ongoing appeal and, should it be required to do so, at any future commission – and that the impact on supporters will be reflected as part of that process.”

Earlier this month, Premier League club shareholders met to discuss potential changes to the PSR system, with a move to UEFA's squad to cost ratio calculations under consideration.