[Source: Reuters]

Everton became the first Premier League club to be deducted points for breaching profitability and sustainability rules (PSR) on Friday, when the league docked the Merseyside club 10 points over their finances in the 2020-21 season.

An independent commission imposed an immediate deduction which will see Everton drop from 14th in the standings into the relegation zone with four points, above bottom side Burnley on goal difference.

The club described the decision as unjust and said it would appeal.

The Premier League said it had issued a complaint against the Merseyside club and referred the case to the 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,” the league said in a statement.

“The Commission determined that Everton FC’s PSR Calculation for the relevant period resulted in a loss of 124.5 million pounds, as contended by the Premier League, which exceeded the threshold of 105 million pounds permitted under the PSRs.”

Everton’s most recent figures showed a fifth straight year of losses, with their total loss over that period amounting to over 430 million pounds ($534 million).