Everton handed further two-point deduction for breaching Premier League's financial rules as the Toffees drop to 16th in the table, just two points above the relegation zone

Everton have been given a further two-point deduction for breaching the Premier League's profitability and sustainability rules.

The latest penalty sees the Toffees drop a place to 16th in the Premier League table, just two points above the relegation zone with seven games left to play. 

The Goodison Park club have announced their intention to appeal the deduction, with a statement saying they 'didn't feel the further sanction was appropriate.' 

Everton were hit with a 10-point penalty back in November for a PSR breach relating to the three-year period that ended in the 2021-22 season. This was reduced to six on appeal in February.

This second breach, for which Everton were referred to an independent commission back in January, relates to the three-year accounting period ending in the 2022-23 campaign.

Premier League PSR rules permit clubs to lose £105million over the three-year window and the independent commission found Everton exceeded that by £16.6m up to 2022-23. 

Relegation rivals Nottingham Forest were docked four points in March for falling foul of PSR regulations - they too launched an appeal. 

The Premier League said: 'Over a three-day hearing last month, the independent Commission heard evidence and arguments from the club in respect of a range of potential mitigating factors for its admitted breach of £16.6million, including the impact of its two successive PSR charges. 

'Having done so, the Commission determined the appropriate sanction to be a two-point deduction, taking effect immediately.

'The independent Commission reaffirmed the principle that any breach of the PSRs is significant and justifies, indeed requires, a sporting sanction.'

Everton's club statement in response read: 'In January 2024, Everton were charged by the Premier League for breaching the permitted Profit and Sustainability thresholds for the assessment period ending 2022/23.

'The matter was referred to a Premier League Commission, which has today announced Everton will receive an immediate two-point deduction. 

'While the Club's position has been that no further sanction was appropriate, the Club is pleased to see that the Commission has given credit to the majority of the issues raised by the Club, including the concept of double punishment, the significant mitigating circumstances facing the Club due to the war in Ukraine, and the high level of co-operation and early admission of the Club's breach.

'Everton remains committed to working collaboratively with the League on all matters relating to PSR but is extremely concerned by the inconsistency of different commissions in respect of points deductions applied.

'The Club would like to place on record its thanks to the Fan Advisory Board and other fan groups for their submissions during this process, and to all Evertonians for their ongoing patience and unstinting support.

'The Club and its legal representatives have begun the preparations to appeal the Commission's decision.'

Dyche's side have been trying to put some distance between themselves and the drop zone, with Saturday's 1-0 home win over Burnley a major boost. 

This news sees them slip below Brentford to 16th, just a couple of points above Luton in 18th spot.   

Their next match is away to Chelsea next Monday evening, by which time they might have dropped into the bottom three.