Everton have announced that the Premier League has dropped its charge against the Club relating to the capitalisation of interest paid on loans related to the construction of the new stadium.

The Blues were found by the League to have breached profitability and sustainability rules (PSR) for the 2022/23 financial year and were docked an additional two points last season on top of the six that were taken away for overspending in 2021/22.

The Independent Commission that recommended the second penalty made allowances for the fact that Everton would effectively have been charged twice for the same rolling three-year period had they been hit with a points deduction of the same size as the first, which was reduced from 10 points following appeal.

However, the panel elected to postpone a ruling on how Everton had accounted for loan interest payments, with the expectation being that either they or a different three-person commission would take up the issue again at a later date.

That left the Club with the threat of further censure hanging over them this season but, having been deemed to be compliant for 2023/24 and with today's announcement, the Blues have been cleared. 

With the £63m loss from 2022/23 still part of the Premier League's PSR calculations, Everton remain hamstrung to extent in how much they are able to spend during the current transfer window, despite having new owners in place.

However, having recorded playing-trading profits in each of the last three seasons, the outlook for the summer's transfer business is completely different and it is anticipated that The Friedkin Group will be able to invest substantially in the squad.

A statemtent from the Club read:

"Everton can confirm the club has resolved all outstanding profit and sustainability rules (PSR) charges brought by the Premier League.

“The Premier League has formally discontinued the second part of the PSR complaint for the period ending FY23 (financial year of 2023) and has deemed the club PSR compliant for FY24.”

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