Everton deducted 10 points from English Premier League season

English Premier League side Everton have been deducted 10 points from this season after breaching the league's Profitability and Sustainability Rules (PSRs).

Key points:Everton were given a points deduction for breaching the league's financial rulesThe deduction means Everton are now 19th, in the relegation zone after 12 matchesEverton narrowly avoided relegation at the end of last season

An independent panel found during the three-year financial period ending at the end of the 2021/22 season, the club had lost 124.5 million British pounds.

The PSRs are "designed to ensure that clubs are financially responsible and do not spend beyond their means", by submitting their accounts for the previous two years, with the estimated profit or loss of the current year.

This is done on March 1 by all clubs, and financial losses can incur penalties.

Points deductions come into effect if a club is found to have losses exceeding 105 million British pounds in a given time frame. 

An independent commission found Everton had exceeded that limit, with the points deduction taking immediate effect.

"The Premier League issued a complaint against the Club and referred the case to an independent Commission earlier this year," a Premier League statement read.

"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.

"Following a five-day hearing last month, the Commission determined that Everton FC's PSR Calculation for the relevant period resulted in a loss of £124.5million, as contended by the Premier League, which exceeded the threshold of £105million permitted under the PSRs."

After 12 matches of the current 38-match season, Everton had amassed 14 points, with four wins, two draws and six losses.

The deduction reduces them to 4 points for the campaign, moving them to 19th in the 20-team league.

The bottom three clubs at the end of each season are relegated to the Championship, the second division in the English football pyramid.

Everton, a storied club from Liverpool whose most recent glory days came in the 1980s, narrowly avoided relegation last season, securing a win on the final day of the season to secure their place in the top flight.