Everton's appeal against 10-point penalty for financial breaches underway

The club were sanctioned by an independent commission in November after being found to have exceeded permitted losses under the league's profitability and sustainability rules (PSR) in the three seasons up to 2021-22, but immediately indicated they would appeal.

It is understood the appeal hearing before an independent commission will run until the end of the week, with the expectation that the outcome of the appeal is known before the end of February.

The outcome of the appeal could also have a direct impact on a second PSR complaint the club are facing which was laid on January 15. That complaint covers an assessment period that ends with the 2022-23 season.

Under a new expedited process to deal with PSR breaches which was agreed by top-flight clubs last summer, an independent commission hearing into the second PSR complaint must conclude no later than 12 weeks after the complaint was laid, which would be early April.

Everton described the initial 10-point penalty as "wholly disproportionate".

The independent commission's written reasons stated the club's overspend "was the result of Everton irresponsibly taking a chance that things would turn out positively". The PSR breach was described as "serious" and warranting "a significant penalty".

Nottingham Forest were also referred to an independent commission over a PSR breach on January 15.

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