Everton's punishment for breaching the Premier League's profit and sustainability rules (PSRs) has been reduced from 10 points to six on appeal by the Merseyside club, the Premier League announced on Monday.
The initial 10-point sanction was handed down in November, with Everton immediately filing their appeal against what was the harshest such penalty in Premier League history.
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In a statement on Monday, the league said: "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."
The decision moves Everton from 17th in the league table to 15th, five points clear of the relegation zone.
Everton said they were satisfied at the ruling in a club statement posted Monday.
"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."
The Premier League's PSRs stipulate that a club can lose no more than £105 million ($133.6m) over a three-year period.
Everton's figures that led to the punishment showed a fifth straight year of losses, with their total loss over that period amounting to more than £430m.
The club said they had posted a loss of £44.7m for the 2021-22 season earlier this year.
After three straight years of losses in excess of £100m, Everton said they had made significant reductions to their losses, down £76m from last year's loss of £121m.
Everton were charged again in January for further contraventions of the PSRs, along with Nottingham Forest, but no punishment has yet been given by the league.
"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," Everton said of those charges in their statement.