Kieran Maguire explains the Farhad Moshiri decision that may have caused Everton's 10-point deduction
Everton have been docked an unprecedented 10 points by the Premier League.
Football finance expert Kieran Maguire has revealed that Everton have been hit with a 10-point deduction because of a 'legal or accounting' issue in terms of funding the new Bramley-Moore Dock stadium.
The Toffees have been found guilty of breaching Premier League profit and sustainability rules. They were referred to an independent commission in March after posting their accounts for the 2021-22 season. Everton lost combined losses of £371.8 million over the previous three years, with the Premier League allowing a maximum of £105 million.
They have been hit with an unprecedented punishment which sees the Blues drop to second-bottom in the Premier League. The club have said they are "shocked and disappointed" and will appeal.
Maguire, a lecturer at the University of Liverpool, has been reacting to the news. Speaking to Sky Sports, he believes that Everton may have been penalised for Farhad Moshiri directly loaning the club money rather than going to high-interest banks.
Maguire said: "Farhad Moshiri acquired the club about seven years ago. He did try to accelerate Everton through increasing player transfer, they had operated a very tight ship prior to that. There were quite a few managerial changes and I'm sure Everton will take responsibility and say they were not completely blameless and were close to the limit. But the Premier League decided to look at the extend of Everton's losses were over £300 million in a three-year period but you are allowed specific deductions for investment in infrastructure, the women's team, the community which Everton's is unprecedented in the country. Everton will feel these are our calculations, the Premier League decided to take a deeper look.
"If Everton had borrowed money through a bank and put that money into the stadium, I think they would have been below the limit whereas they've borrowed money directly through the owner and this is proving to be a legal/ accounting issue rather than a footballing one.
"If there was going to be a breach and a points deduction, I think most people thought it would have been in the region of 3-6. Ten is unprecedented, Birmingham City breached financial fair play rules in the Championship a few years ago and were given a nine-point deduction. That was for a much clearer set of circumstances so you can understand why Everton are aggrieved."