Everton and Nottingham Forest have been referred to an independent commission over an alleged breach of the Premier League’s profitability and sustainability regulations (PSR).
Forest become the third top-flight club to be charged with a breach of the league’s financial rules after reporting losses that exceed the allowed amount over the three-year reporting cycle.
Everton, who are already appealing against a 10-point deduction relating to the 2021-22 season, have also been charged for a further alleged breach.
Under the guidelines both clubs are now at risk of a fine or a points deduction.
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An Everton statement read: “Everton Football Club acknowledges the Premier League’s decision to refer a breach of profit and sustainability rules (PSR) for the assessment period ending with the 2022/23 season to an independent Premier League commission.
“This relates to a period which covers seasons 2019/20, 2020/21, 2021/22 and 2022/23. It therefore includes financial periods (2019/20, 2020/21 and 2021/22) for which the club has already received a 10-point sanction. The club is currently appealing that sanction.
“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 club takes the view that this results from a clear deficiency in the Premier League’s rules.
“Everton can assure its fans that it will continue to defend its position during the ongoing appeal and, should it be required to do so, at any future commission – and that the impact on supporters will be reflected as part of that process.”
A Forest statement read: “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 are confident of a speedy and fair resolution.”
New guidelines aimed at fast-tracking PSR decisions have been introduced to ensure any basic breaches of the regulations are dealt with in time for punishments, such as points deductions, to be levied in the same season as the charge is brought.
All clubs had to submit their accounts for 2022-23 by December 31 — rather than in March as they had previously — with any breaches and subsequent charges confirmed 14 days later.
The league have pencilled in May 24 as a backstop date for any appeal which comes after the end of the season on May 19. This date comes ahead of the league’s annual general meeting.
As reported by The Athletic, this raises the prospect of teams who are appealing against potential points deductions completing their league season while not knowing their final league position or even what division they may be playing in for the following campaign.
Forest have signed 42 players since securing promotion in May 2022, with owner Evangelos Marinakis sanctioning a transfer spend of around £250m to help the club establish themselves in the top flight.
Forest believed they had worked within the regulations when it came to the allowable losses with a lot of the issue centring around Brennan Johnson’s sale to Tottenham Hotspur.
The club’s argument — which they have made in conversations with…
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