Everton and Nottingham Forest accused of breaching Premier League financial rules

The Premier League has accused Everton and Nottingham Forest of violating its financial rules.

Both clubs were referred to an independent committee over alleged breaches of profit and sustainability rules in their accounts for 2022-2023.

Under Premier League regulations, clubs can lose up to a maximum of £105m over a three-season period, or £35m per season, before facing penalties.

Clubs that violate these rules risk a fine or points deduction.

The English Premier League said in a statement that Everton and Nottingham Forest “confirmed that they are violating the league's profitability and sustainability rules.”

She added: “This is a result of incurring losses higher than the permissible limits for the evaluation period ending in the 2022-23 season.”

He added: “In accordance with Premier League rules, both cases have now been referred to the Chairman of the Judicial Committee, who will appoint separate committees to determine the appropriate punishment.”

Clubs now have 14 days to submit their formal responses, and under league rules, hearings must conclude within 12 weeks. Appeal hearings must be held before May 24, 2024 and the complaint must be resolved before June 1.

Clubs are in breach of the Profit and Sustainability Rules (PSR) if their calculation over the relevant period results in a loss of more than £105m, although this limit is reduced by £22m for each season a club spends in the Championship over the Championship period. that relevant period.

Nottingham Forest spent two seasons in the Championship during the three-year assessment period, meaning the club's maximum loss is £61m.

Clubs had to submit their accounts for 2022-23 by December 31 under new rules designed to speed up the reporting process and ensure any sanctions are imposed during the season in which the alleged breach occurred.

The Premier League had 14 days from the date of the report to inform clubs whether they had been in breach.

Everton occupies 17th place in the Premier League table and is only one point ahead of Luton Town, who is in the relegation zone after playing a game more, while Nottingham Forest is four points away from the relegation zone in 15th place.

Everton acknowledged the Premier League's decision to refer it to an independent panel for breaching profit and sustainability rules for the evaluation period from the 2019-20 season until the end of the 2022-23 season.

They were given an immediate 10-point deduction – the biggest penalty in Premier League history – in November after an independent panel found the club's losses up to the 2021-22 season amounted to £124.5m.

Their appeal is scheduled to be heard before the end of this season.

Everton said in a statement: “The club must now defend another Premier League complaint involving the same financial periods for which the club has already been sanctioned, before this appeal can be heard. The club considers these findings to be a clear defect in the Premier League’s rules.

“Everton can assure its fans that it will continue to defend its position during the ongoing appeal and, if necessary, at any future committee – and that the impact on fans will be reflected as part of this process.”

In a new statement on Monday, Rotherham said they had “serious concerns” about the transparency of the process and that by potentially being punished twice in the same season, Everton were facing “double jeopardy”.

He added: “It is not about one club, but about ensuring that our game is open and fair in dealing with all clubs.

“It's hard to see how anyone could have any confidence in such an obscure operation.”

The new accusations against Everton come at a time of great uncertainty for the club.

In September, owner Farhad Moshiri agreed to sell his 94% stake in the club to US investment fund 777 Partners.

The club is also building a new stadium on the banks of the River Mersey at Bramley-Moor Dock, which is scheduled to open in late 2024.

Nottingham Forest join Everton and Manchester City as the only top-flight clubs charged with breaching profit and sustainability regulations.

Since gaining promotion from the Championship in May 2022, Forest have spent nearly £250m on new signings.

In September 2022, the club broke the British record for most signings in a single transfer window after welcoming 21 new arrivals.

The club said in a statement: “Nottingham Forest acknowledges the statement issued by the English Premier League confirming that the club is today accused of violating the league’s profitability and sustainability rules.”

He added: “The club intends to continue to cooperate fully with the English Premier League in this matter, and is confident of reaching a quick and fair solution.”

Forest have hired leading sports lawyer Nick De Marco to defend their case, which is believed to center around the sale of Brennan Johnson to Tottenham for up to £45m in September.

This happened after the accounting deadline, but Forrest argues that their negotiating tactics allowed them to get a higher fee than if they had had to sell by June 30, 2023.

Manchester City is the only other club to be accused by the Premier League of financial irregularities, when it was referred to an independent panel over more than 100 alleged rule breaches between 2009 and 2018.

Treble-winner City were charged in February 2023 – before Everton's initial charge – and this case is ongoing.

Chelsea were fined £8.6m by UEFA in July for “providing incomplete financial information” between 2012 and 2019 as part of a settlement for breaching Financial Fair Play rules.