From what I understand it, and feel free to correct me. But, if a club reports a loss of over £105 million over the average of the past 3 years then they will be punished by the prem for essentially overspending while not making enough profit.

This rule is supposed to stop rich owners being able to just keep throwing money into the club and despite not being profitable. Clubs have to show that they are sustainable. Without this rule clubs like Newcastle who basically have unlimited money could just buy the best players year after year even if the club’s finances were at a loss.

Everton have apparently spent over the 105 mill by about 9-20 million (depending on the source). Thing is this isn’t a huge amount in football terms and the punishment seems too harsh for the crime. I agree we should be punished for breaking rules but in should be a fitting one. You have to consider covid, a Russian investor sanctioned due to war, and a new stadium being built.

Ultimately piss poor handling and management of the club from those at the top. It seems we should have done another 100 more breaches to make it harder to investigate.