Because a club going into administration completely fucks the whole division and pyramid. You can’t just have a team stop playing half way through the season.

So the punishment is as severe as it is to prevent teams out spending their means.

Everton are a little unlucky cos 200m of their losses was from a Russian investment firm having to bail out of sponsorship rights on their new stadium, becuase the Premier league introduced sanctions at the start of the Russian Ukraine war (same reason abramovich had to fuck off).