The Premier League has charged both Everton and Nottingham Forest with violating its financial rules. The two clubs have been referred to an independent commission for alleged breaches of the profit and sustainability rules in their 2022-23 accounts. The maximum loss a club can face over a three-season period is £105m, or £35m per season, before being punished. If the rules are breached, a club may face a fine or points deduction. Everton is currently appealing against a 10-point deduction from a previous charge.
The Premier League stated in a press release that both clubs informed the league they were in breach of the profitability and sustainability regulations. It added that “this is as a result of sustaining losses above the authorized thresholds for the assessment period ending season 2022-23.” both cases have been referred to the chair of the judicial panel according to Premier League rules, who will appoint separate commissions to determine the proper punishment. If the calculation over the relevant period entails a loss greater than £105m, clubs are in breach of profit and sustainability regulations (PSR), although this threshold is reduced by £22m for each season the club plays in the Championship over the course of the assessment period. Nottingham Forest spent two seasons in the Championship during the three-year assessment period, lowering the club’s maximum loss to £61m.
To hasten the reporting process and ensure that any penalties were imposed during the season when the supposed infringement occurred, clubs had to file their accounts for 2022-23 by 31 December under new rules. The Premier League had 14 days from the reporting date to inform clubs whether they were in violation or not. Everton is currently 17th in the Premier League standings, just one point ahead of Luton Town, which is in the relegation zone but has played a game more. Nottingham Forest is safely ensconced in 15th place, four points clear of the drop zone.
Everton has stated that it will continue to defend its position. The club’s fans have already protested anti-Premier League decisions this season, which came after the club was docked 10 points for alleged financial rule infringements. Clubs that violate profitability and sustainability rules are at risk of losing points or being fined
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