Everton have had their points deduction for a breach of the Premier League’s profitability and sustainability rules reduced to six points from 10, the club and the Premier League said on Monday.

Everton were docked points with immediate effect in November after being found to have breached profitability and sustainability rules (PSR) relating to losses.

“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,” the Premier League said in a statement.

The original points deduction meant Everton dropped from 14th in the standings into the relegation zone with four points. The club filed an appeal against the initial deduction, which they labelled “wholly disproportionate and unjust”.

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,” a club statement said.

Everton admitted to a breach of PSR for the period ending with the 2021-22 season, with their total losses for that period amounting to 124.5 million pounds according to an independent commission.

According to the Premier League’s Financial Fair Play regulations, clubs are permitted to lose a maximum of 105 million pounds over a three-year period.

The Merseyside club recorded four straight wins after their deduction to climb up to 16th, but have been dragged back into the relegation battle following a run of nine league games without a victory.

The reduction means Everton move up to 15th in the standings with 25 points, five points above the relegation zone.

Everton were then charged once again by the Premier League in January for a separate PSR breach, along with Nottingham Forest.

Both clubs were referred to the chair of the Judicial Panel, the Premier League said, who will appoint an independent commission to determine the appropriate sanction, which may include a further deduction for the Sean Dyche-led club.

A second points penalty would increase risk of relegation and add to the uncertainty over the future of Everton, who are currently in the midst of protracted takeover talks with U.S. investment fund 777 Partners and also hoping to move to a new stadium ahead of the 2025-26 season.