Gary Neville expects Everton to have their points deduction reduced amid a possible compensation claim from Leicester City.

Everton were docked 10 Premier League points earlier this month for breaching financial stability rules. They face possible claims for compensation from Leicester, Leeds United and Burnley. The three teams were relegated at Everton’s expense in recent seasons.

Speaking to our sister title the Liverpool Echo about the punishment, Neville said he understands Everton supporters’ anger. He also thinks the punishment will be reduced upon appeal, which could impact Leicester’s claim for compensation.

“I thought it was harsh,” Neville told the ECHO prior to Sunday’s 3-0 defeat against Manchester United. “I knew they would obviously get some level of punishment, I think Everton knew they would get some level of punishment because they have admitted guilt.

“But to be awarded the harshest sanction the Premier League has ever awarded. For me, to think about the consequences of the Super League, Project Big Picture, all the scheming behind the backs of the other clubs that the top six did a few years ago, for them to be awarded a £3 million fine and for Everton to get 10 points, it seems completely not aligned. ‘Disproportionate’ is the word that Everton have used, they said they will also be looking at what other clubs’ punishments are going to be in the summer and I’m not surprised.

“I understand the anger, completely. I also would understand their anger at their own board and their own ownership. Twenty million pounds or £30m whatever they’re out, you’ve still got to be better than that. Let’s be clear. They were told, they were warned, they were working with the Premier League and knew they were over.

“I can also see why they feel let down and angered because what Everton have done is come clean, admitted their guilt, they have not tried to deny it. And yet they have still been absolutely battered with a very harsh punishment. The argument is that they are the first of this new wave of punishments that are going to come forward by the Premier League. You don’t mind getting punished as long as it’s in line with other clubs and other members of the league. I can understand completely why the anger sits with Everton fans in the Premier League.”

Neville added: “I can see that there may be some points reduced. I think if there were some reduced that would feel a bit more acceptable. I think that at the moment, the Premier League recommended 12 and the Independent Commission said 10, there is going to be an appeal, who knows? You’re rolling the dice and hoping your number comes up a little bit.

“There is no precedent for it, that’s the issue. We know Portsmouth went into administration and got deducted nine points, Everton have had a £19m overspend, which is not a lot of money in today’s game. For me, it is harsh and it will be interesting to see what happens going forward.”