Everton and Nottingham Forest Face Alleged Breach of Premier League Financial Regulations
Two Premier League clubs, Everton and Nottingham Forest, have been referred to an independent commission over an alleged breach of the league’s profitability and sustainability regulations. This news follows Everton’s recent appeal against a 10-point deduction for a breach of the three-year reporting period ending in the 2021-22 season.
Nottingham Forest becomes the third top-flight club to face charges for exceeding the allowed amount of losses over a three-year reporting cycle. The club has made significant investment in securing its place in the top flight since being promoted in May 2022, signing a total of 42 players for a transfer spend of approximately £250 million.
For Everton, this alleged breach is another blow after years of financial mismanagement. The club has reported losses of £260 million across the two seasons impacted by the COVID-19 pandemic alone. This puts their top-flight position at risk as they could potentially face two sanctions in the same season.
Under the Premier League’s guidelines, both clubs face the possibility of fines or points deductions if found guilty of breaching the financial regulations. The league has introduced new guidelines to ensure that punishments can be levied in the same season as the charges are brought, fast-tracking the decision-making process.
The consequences for Everton could be severe, potentially impacting their standing in the top flight. All Premier League clubs are assessed for adherence to the profitability and sustainability rules, which allow a maximum loss of £105 million over three seasons.
This is only the second time action of this nature has been taken, following Manchester City’s more than 100 charges last year. In recent years, clubs like Chelsea have faced punishment for financial breaches in the English Football League. However, penalties in the top tier of English football, such as points deductions, are relatively rare, with only Middlesbrough and Portsmouth having received such punishments in the Premier League’s history.
Both Everton and Nottingham Forest now find themselves in a precarious situation, awaiting the independent commission’s decision. The outcome could have far-reaching implications for the clubs and their future in the Premier League.
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