Everton's appeal against a 10-point penalty imposed for breaches of financial rules has been reduced to six points after an appeal.
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.
The reduced points deduction will see Everton leapfrog two teams and up to to 15th in the Premier League table - a vital development in their battle against relegation.
A club statement from Everton said they were 'satisfied' with the result of the appeal and feels 'vindicated' - but said it was 'still considering the wider implications' of the decision.
'Everton can confirm an Appeal Board has concluded that the points deduction imposed by an independent Premier League Commission in November be reduced from 10 points to six points, with immediate effect.
'While the Club is still digesting the Appeal Board's decision, we are satisfied our appeal has resulted in a reduction in the points sanction.
'We understand the Appeal Board considered the 10-point deduction originally imposed to be inappropriate when assessed against the available benchmarks of which the Club made the Commission aware, including the position under the relevant EFL regulations, and the 9-point deduction that is imposed under the Premier League's own rules in the event of insolvency.
'The Club is also particularly pleased with the Appeal Board's decision to overturn the original Commission's finding that the Club failed to act in utmost good faith. That decision, along with reducing the points deduction, was an incredibly important point of principle for the Club on appeal. The Club, therefore, feels vindicated in pursuing its appeal.
'Notwithstanding the Appeal Board's decision, and the positive outcome, the Club remains fully committed to cooperating with the Premier League in respect of the ongoing proceedings brought for the accounting period ending in June 2023.
'The Club is still considering the wider implications of the decision and will make no further comment at this time other than to place on record its thanks to our Fan Advisory Board and other fan groups throughout this process, and to all Evertonians for their ongoing support and patience.'
The Toffees made their the appeal hearing before an independent commission earlier this month after the club described the initial 10-point penalty as 'wholly disproportionate'.
The outcome of the appeal may 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.
The Premier League released their own statement confirming the reduction.
'An independent appeal board has concluded that the sanction for Everton FC's breach of the Premier League's profitability and sustainability rules (PSRs), for the period ending Season 2021/22, will be an immediate six-point deduction.
'This follows the club's appeal of an independent commission's decision in November 2023 to impose a 10-point deduction for the club's breach of the PSRs.
'The appeal was heard over three days earlier this month, by an appeal board comprising Sir Gary Hickinbottom (Chair), Daniel Alexander KC and Katherine Apps KC.
'Everton FC appealed the sanction imposed against it on nine grounds, each of which related to the sanction rather than the fact of the breach, which the club admitted.
'Two of those nine grounds were upheld by the Appeal Board, which has substituted the original points deduction of 10 for six.
'This revised sanction has immediate effect and the Premier League table will be updated today to reflect this.'
Everton said at the time of the deduction they were 'shocked and disappointed' by the Premier League's ruling, which plunged them into the relegation zone.
The commission responsible said 'Everton'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 £105m permitted under the PSRs.'
Everton were 14th in the Premier League table when then punishment kicked in - eight points above the relegation zone.
Before the verdict, Everton were sat in 18th, one point adrift of safety with Luton ahead of them.
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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Am now certain that City won't be found guilty ✅✅😂