Everton looking at 9 more points deducted, administration and relegation – Domino effect

It is now looking like the ten points deduction could be just the tip of the iceberg when it comes to problems facing Everton now.

With the Premier League finally taking action against clubs who break the rules.

A new exclusive on Saturday from The Mail, revealing that Everton are now looking at the very strong possibility / probability of another nine points deduction, relegation and administration.

This follows an earlier revelation that Burnley, Leicester and Leeds are taking action to claim £300m compensation from Everton.

This new exclusive saying that if / when a second Premier League independent commission rules that other clubs should be compensated by Everton for breaching spending regulations, then they could face administration and another nine points deduction, leading to almost certain relegation. A domino effect set to happen, after Friday’s initial guilty verdict and punishment.

The Mail saying that Burnley, Leeds and Leicester are pressing ahead with their plans to bring a compensation claim against Everton, which they say would be heard before the end of the season by another independent three person panel appointed by the Premier League.

The intended sale of Everton to 777Partners contains clauses stipulating that the sale price will be reduced significantly if Everton are instructed to pay compensation or relegated from the Premier League, plus these new intended owners are unwilling / unable to foot a massive compensation bill that could run into hundreds of millions.

The current Everton regime lack the funds to settle any significant compensation bill, which would the leave the club facing administration, which would then in turn bring another automatic nine points penalty that has been in the Premier League rules since 2004, for any club going into administration. As I say, the domino effect in full flow.

The loss of another nine more points would almost certainly ensure Everton’s relegation, as well as a fire sale of any half decent player another club would be willing to pay anything for.

The Mail report that:

‘Burnley, Leeds and Leicester have 28 days from Friday’s judgement to formally lodge their claim, with the Premier League confident it will be heard before the end of the season, as will Everton’s planned appeal against the 10-point punishment.

777 have already loaned Everton over £40m on the understanding that this debt will be converted into equity in the club if their takeover takes place.

If the American investment firm withdraws or their proposal is rejected by the Premier League they would become secondary debtors, joining the back of the queue to be repaid by Everton behind their other funders Metro Bank and MSP Capital, as well as other creditors.’

The rest of football is now looking on to see what happens further at Everton and also Manchester City, with an outcome awaited finally on their alleged 115 breaches of Premier League rules. Whilst an anxious Chelsea also said to be looking over their shoulder now…

It has been a long time coming for the Premier League to finally crack down on those breaking the rules, hopefully this initial Everton action won’t prove the end of it.