Everton deducted 10 points over financial fair play breach
The Toffees were referred to an independent commission in March this year for an alleged breach of profit and sustainability rules in the period ending in the 2021/22 season.
The deduction is the biggest in the competition's history and drops the club into the relegation zone in 19th place, only above bottom side Burnley on goal difference.
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 £124.5 million, as contended by the Premier League, which exceeded the threshold of £105 million 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."
Everton say they are "shocked and disappointed" by what they call an "unjust" ruling by the Premier League and are now beginning the process to appeal the decision.
"Everton Football Club is both shocked and disappointed by the ruling of the Premier League's Commission," the club said in a statement.
"The Club believes that the Commission has imposed a wholly disproportionate and unjust sporting sanction. The Club has already communicated its intention to appeal the decision to the Premier League.
"The appeal process will now commence and the Club's case will be heard by an Appeal Board appointed pursuant to the Premier League’s rules in due course.
"Everton maintains that it has been open and transparent in the information it has provided to the Premier League and that it has always respected the integrity of the process. The Club does not recognise the finding that it failed to act with the utmost good faith and it does not understand this to have been an allegation made by the Premier League during the course of proceedings.
"Both the harshness and severity of the sanction imposed by the Commission are neither a fair nor a reasonable reflection of the evidence submitted.
"The Club will also monitor with great interest the decisions made in any other cases concerning the Premier League's Profit and Sustainability Rules. Everton cannot comment on this matter any further until the appeal process has concluded."
This is only the third time in Premier League history that a club has received a points deduction.
Middlesbrough were previously docked three points for a failure to fulfil a fixture against Blackburn in the 1996/97 campaign while Portsmouth were deducted nine in 2010 after entering administration.
