Business of Football editor of the Liverpool ECHO Dave Powell has said a points deduction for Everton is not a likely outcome.
It comes after it emerged last week that Everton had broken Premier League profit and sustainability rules between 2017-2020.
Over the three years, Everton’s accounts revealed over £250m in losses – £155m over what is allowed in that period.
But Powell said: “There is a lot of misinformation from some publications in terms of points deductions and other things.
“That is something that isn’t imminent for the football club at all.
“There is a lot more things that would happen before a points deduction was a possibility.”
It is no real surprise that Everton find themselves in this situation.
“The issues around profit and sustainability were there for all to see,” the business editor said.
“They spent a lot of money trying to bridge the gap that exists between the Top 4 and European football.”
Powell also reiterated that sustainability is easier for Top 6 clubs because of their revenue.
“Without having the revenues that come with that, (European Football) it is a closed shop for good reason,” he said.
“Those same six clubs are on a conveyor belt every season and they book those revenues which count into the following year.
“Everton banked on themselves over achieving.
“Their transfer policy has been flawed and they’ve spent big money on players who haven’t cut it.
“In terms of turning it around, they need to implement a clear strategy.
“Seeing players like Tosun, Delph and Sigurdsson, who are on big contracts, move on will also help.”
With regards to the Bramley-Moore Dock Stadium, these new findings will not affect its construction.
There were also concerns the Russian invasion of Ukraine could affect the stadium due to USM having bought its naming rights.
However, Powell confirmed that this is not the case.
What will affect the stadium is Everton’s Premier League survival, something Powell described as ‘paramount’.
“Approaching investment banks to seek favourable loans at a favourable interest rate, like Spurs, will be difficult.
“Everton’s survival is not confirmed and that slows up major parts of the stadium’s funding.
“Investment banks will want to see the Toffees having the revenue-streams to cope with repayments. If they go down, high interest rates will be problematic.”
According to Powell, relegation won’t just affect the stadium. If Everton go down, the financial losses will be catastrophic.
“Everton have established Premier League wage bills. Some players are on £150,000 a week. Everton will become even bigger loss makers.
“Relegation will not affect attendances, but match-days revenue is not where it all lies. All the money is in the media rights.
“Compared to the top-flight, the Championship TV deal is peanuts.
“If Everton are not in the Premier League media rights, that will be a huge blow.
“You only have to look at Sunderland to see how fast disaster can kick in after relegation.”
