Image features Goodison Park.

Emilie Mwanza

Everton and Nottingham Forest are facing charges by the Premier League for breaking its financial rules.

Both clubs now face a possible points deduction after being referred to an independent commission for alleged breaches of profit and sustainability rules (PSR).

The Premier League regulations state that a club can lose a maximum of £105m throughout three seasons, or £35m per campaign, before facing sanctions.

Premier League Statement

In a statement released on Monday, 15th January, the Premier League confirmed that Everton and Nottingham Forest were in breach of Profitability and Sustainability rules “as a result of sustaining losses above the permitted thresholds for the assessment period ending Season 2022/23.”

They added: “In accordance with Premier League rules, both cases have now been referred to the chair of the Judicial Panel, who will appoint separate Commissions to determine the appropriate sanction.”

Nottingham Forest City Ground. Image courtesy of rchappo2002 on Flickr. No changes were made to this image. Image licence found here.

The clubs have been given 14 days to reply to their charges before facing a hearing, which must be concluded within 12 weeks. This is to determine any punishment necessary.

Current Club Struggles

Everton is also appealing another 10-point deduction handed to them in November 2023. This was a previous charge for a £19.5m overspend in 2021/22.

Despite receiving the points deduction on 17th November, the biggest sporting sanction in Premier League history, Everton responded well by winning four consecutive league matches in the following weeks.

“…another possible points deduction could be disastrous.”

However, Everton still sits at 17 on the Premier League table, just one point above Luton Town, leaving them just outside the relegation zone. This means another possible points deduction could be disastrous.

Though clubs are found to be in breach of the PSR rules if their net spend over the relevant three years is over £105m, this threshold is reduced by £22m for any season they spend in the Championship during that period.

So for Nottingham Forest, who spent two seasons in the Championship during 2020/21 and 2021/22, their maximum loss must be £61m.

This season, the Premier League introduced new regulations to streamline club expenditures. They aimed to ensure that any fines or deductions would be given in the season they were incurred.

This meant that all 20 clubs had to submit their accounts by 31st December, ready for review by the Premier League. The Premier League then had 14 days to inform them whether they were breaching the rules.

Responding to the New Premier League Charges

Everton

Everton’s current appeal for their previous points deduction is due to be heard before the end of this season.

”The Club takes the view that this results from a clear deficiency in the Premier League’s rules.”

In a club statement released on their website, Everton said: “The Premier League does not have guidelines which prevent a club being sanctioned for alleged breaches in financial periods which have already been subject to punishment, unlike other governing bodies, including the EFL.

“As a result – and because of the Premier League’s new commitment to deal with such matters ‘in-season’ – the club is in a position where it has had no option but to submit a PSR calculation which remains subject to change, pending the outcome of the appeal.

“The Club must now defend another Premier League complaint which includes the very same financial periods for which it has already been sanctioned before that appeal has even been heard.”

The statement concluded: “The Club takes the view that this results from a clear deficiency in the Premier League’s rules.”

Whilst the club has assured that it will continue to defend its position, the announcement of the last points deduction was followed by thousands of Everton fans holding anti-Premier League protests.

Nottingham Forest

”The club intends to continue to cooperate fully with the Premier League on this matter.”

Nottingham Forest released a much shorter statement than Everton, with chief news reporter Kaveh Solhekol of Sky Sports describing it as “conciliatory in tone”.

In response to the charges, the club said: “Nottingham Forest acknowledges the statement from the Premier League confirming that the club has today been charged with a breach of the league’s Profitability and Sustainability Rules.

“The club intends to continue to cooperate fully with the Premier League on this matter and is confident of a speedy and fair resolution.”

It has been reported that Forest has employed sports lawyer Nick de Marco KC to fight their case.

The only other club charged with financial breaches by the Premier League is Manchester City, who was referred to an independent commission over 115 alleged rule breaches in February 2023.

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Featured image courtesy of The Stadium Guide on Flickr No changes were made to this image. Image licence found here.

A trainee multimedia journalist at Univeristy of Central Lancashire and a girl who loves the buzz of breaking news. Tottenham Hotspur through and through.

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