26 February 2024 , 16:22
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Everton have committed more than £800m to the building of their new stadium, according to the Premier League ’s appeal board.
The Toffees have had their points deduction for breaches of the league’s profit and sustainability rules reduced to six points following a partially successful appeal.
But within the 61-page document published outlining the decision to row back on the initial deduction of 10 points, the Premier League have revealed the cost of the new stadium being built at Bramley Moore Dock has skyrocketed to £300m more than first forecasted by the club.
According to paragraph 135 section iii of the appeal decision: “There was uncontested evidence that the new stadium posed an inevitable strain on the finances of the club which has to date committed over £800m to the project.”
Last year Farhad Moshiri, who is seeking to sell his majority stake in the club, claimed on social media that the stadium was costing £740m only for the club to insist that figure was incorrect and the initially projected costs remained.
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The new ground, which will have a capacity of approximately 53,000, is expected to open next year.
While the Premier League underlined that Everton did not contest that they had broken the PSR rules, their appeal centred on how the initial commission judged their case.
Clubs are permitted maximum losses of £105m on a three-year cycle, which were judged to have fallen foul of by recording losses of £124.5m for the period between 2019-20 to 21-22. They have also been charged with the same breach for 21-23 and are awaiting an update on that case.
Work continues on the new stadium at Bramley Moore Dock. (Getty Images)The return of four points means Everton are now 15th in the Premier League table and five points clear of the relegation places. According to the Premier League, Everton pointed to nine different factors relating to the original commission in their appeal and two of those were accepted, leading to a lesser sanction being imposed.
In their written reasons for the judgment, the Premier League said its appeal board concluded that the commission which handed down the 10-point punishment "made legal errors."
First, the appeal board said, the commission was "wrong" to say the club was "less than frank" and did not act in "utmost good faith" in relation to costs associated with the building of their new stadium at Bramley Moore Dock. And secondly, the Premier League said, the commission was "wrong not to take into account available benchmarks" [from the EFL] in relation to the proportionality of the 10-point punishment.
The appeals board said: "These errors were material, in that they affected approach and conclusion of the commission in relation to sanction."
However, the appeal board did underline that Everton still broke financial rules, adding that "a six point immediate points deduction is appropriate and proportionate in that it is a sanction both necessary and sufficient to achieve the aims of the PSR."
In a statement, Everton said: "While the club is still digesting the appeal board's decision, we are satisfied our appeal has resulted in a reduction in the points sanction.
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