The league referred Everton to an independent commission in March over an alleged breach of profitability and sustainability rules.
Everton have been deducted 10 points for a breach of the Premier League’s profitability and sustainability rules (PSR) for the season ending 2021-22, the league has said.
An independent commission imposed an immediate deduction which will see Everton drop from 14th in the standings into the relegation zone, above bottom side Burnley on goal difference.
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 on Friday.
“The Commission determined that Everton FC’s PSR Calculation for the relevant period resulted in a loss of 124.5 million pounds [$154.70m], as contended by the Premier League, which exceeded the threshold of 105 million pounds permitted under the PSRs.”
Everton, who had 14 points after 12 games before the deduction, said the sanction was “wholly disproportionate and unjust” and announced its intention to appeal the decision to the Premier League.
“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,” it said.
“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.”