Everton and Nottingham Forest have been charged with breaching the Premier League’s profitability and sustainability rules.
Premier League clubs are permitted to lose a maximum of £105m over a three-year period (£35m a season).
Due to Forest spending two seasons in the Championship within the latest assessment period, the maximum loss they were allowed was £61m.
The Premier League said on Monday the two clubs have been charged after “sustaining losses above the permitted thresholds for the assessment period ending season 2022/23”.
Both have been referred to independent commissions which will determine the appropriate sanction.
Nottingham Forest and Everton have 14 days to submit their formal answers to the complaints.
If the new breaches are proven, the clubs face the threat of points deductions, or fines.
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It comes in addition to Everton being deducted 10 points last November – the largest sanction in the league’s history – which the Toffees labelled as “wholly disproportionate and unjust”.
In a statement in relation to the latest charge, Everton said the breach relates to a period which covers the seasons 2019/20, 2020/21, 2021/22 and 2022/23.
The club said it includes the financial periods 2019/20, 2020/21 and 2021/22 for which Everton have already received a 10-point sanction.
‘Clear deficiency in Premier League’s rules’
The Toffees’ statement read: “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 [profit and sustainability rules] calculation which remains subject to change, pending the outcome of the appeal.”
They added: “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.”
Everton claimed “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.”
Image: Nottingham Forest’s City Ground
In a statement, Nottingham Forest said they intend “to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution”.
The East Midlands club were in the Championship until 2022, where clubs are permitted a maximum loss of £39m across three seasons, or £13m per season, meaning their permissible losses over the last three campaigns would add up to £61m.
Forest are currently 15th in the Premier League table, while Everton are 17th, one place above the relegation zone.
New fast-track process by Premier League
The Premier League “has a new fast-track, streamlined profitability and sustainability process” – which is why clubs today found out if they had broken the rules, Sky Sports News chief reporter Kaveh Solhekol explains.
“The reason it’s been done so quickly is that, in the past, many people have complained how long these cases drag on; clubs can potentially be deducted points for something they’ve done wrong three or four seasons ago,” he said.
“The Premier League have responded to that criticism, and that’s why we’re seeing a faster process.”
Last February, Manchester City were also referred to an independent commission over more than 100 alleged breaches of financial rules since the club were acquired by the Abu Dhabi-based City Football Group in 2008.
No verdict has been reached in that case. City have strenuously denied the charges.
What has the Premier League said?
The Premier League said today in a statement: “Everton FC and Nottingham Forest FC have each confirmed to the Premier League that they are in breach of the League’s profitability and sustainability rules. This is as a result of sustaining losses above the permitted thresholds for the assessment period ending season 2022/23.
“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.
“Commissions are independent of the Premier League and member clubs. The proceedings are heard in private with the commissions’ final decisions made public on the Premier League’s website.”
Sky News can reveal that the government has rowed back on a national compensation scheme for victims of child sexual abuse, despite it being promised under the previous Conservative administration.
Warning – this story contains references to sexual and physical abuse
A National Redress Scheme was one of 20 key recommendations made by the Independent Inquiry into Child Sexual Abuse (IICSA), but a Home Office report reveals the government has scrapped it because of the cost.
Marie, who is 71, suffered alleged sexual, physical, and emotional abuse at Greenfield House Convent in St Helens, Merseyside, between 1959 and 1962, and is still fighting for compensation.
Image: Greenfield House Convent, where Marie says she was abused
As soon as she arrived as a six-year-old, Marie says her hair was cut off, her name changed, and she experienced regular beatings from the nuns and students.
She claims a nun instigated the violence, including when Marie was held down so that her legs were “spread-eagled” as she was sexually abused with a coat hanger.
Merseyside Police investigated claims of abuse at the convent, but in 2016, a suspect died before charges could be brought.
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Marie has received an apology from the Catholic body that ran the home; she tried to sue them, but her claim was rejected because it was filed too long after the alleged abuse.
Image: Marie, 71, is still fighting for compensation for the abuse she says she suffered as a child
In February, ministers said the law would change for victims of sexual abuse trying to sue institutions for damages, which was a recommendation from the IICSA.
Previously, people had to make a civil claim before they were 21, unless the victim could prove a fair trial could proceed despite the time lapse.
Campaigners argued for the time limit to be removed as, on average, victims wait 26 years to come forward. Changes to the 1980 Limitation Act could lead to more people making claims.
Image: Peter Garsden, President of The Association of Child Abuse Lawyers
Civil cases ‘can take three to five years’
But Peter Garsden, president of the Association of Child Abuse Lawyers, worries that when it comes to historical abuse where the defendant is dead, institutions will still argue that it is impossible to have a fair trial and will fight to have the case thrown out of court.
Mr Garsden said it takes “between three and five years” for a civil case to get to trial.
He warned that claimants “can end up losing if you go through that process. Whereas the Redress Scheme would be quicker, much more straightforward, and much more likely to give justice to the victims”.
Victim awarded £10 compensation
Jimbo, who was a victim of abuse at St Aidan’s children’s home in Cheshire, took his case to the High Court twice and the Court of Appeal three times, but, after 13 years, all he ended up with was £10 for his bus fare to court.
Despite the Lord Justice of Appeal saying he believed that the abuse had occurred, Jimbo lost his claim because of the time limit for child sexual abuse claims to be made.
Neither Marie nor Jimbo is likely to benefit from the removal of the time limit for personal injury claims, which is why Mr Garsden is calling on the government to implement a National Redress Scheme for victims of sexual abuse, as recommended by the IICSA.
Hundreds of millions paid to victims
The governments in Scotland and Northern Ireland have set up compensation schemes and paid hundreds of millions of pounds to victims.
In 2023, the then Conservative government said a similar scheme would be organised for England and Wales.
But the Home Office admitted in its Tackling Child Sexual Abuse: Progress Update that it “is not currently taking forward any further steps on the IICSA proposal for a separate, national financial redress scheme for all survivors of child sexual abuse”.
“In the current fiscal environment, this recommendation is very difficult to take forward,” it added.
For victims, the scheme was the last chance of compensation for a lifetime blighted by abuse.
“The money is about justice and about all the other people who have had to suffer this abuse,” Marie said.
Five men have been arrested on suspicion of the preparation of a terrorist act, according to the Metropolitan Police.
Counter-terror officers arrested the five men, four of whom are Iranian nationals, on Saturday, with all currently in police custody.
The Met said the arrests related to a “suspected plot to target a specific premises”.
In an update shortly after midnight, the force said: “Officers have been in contact with the affected site to make them aware and provide relevant advice and support, but for operational reasons, we are not able to provide further information at this time.”
It added officers were carrying out searches at a number of addresses in the Greater Manchester, London and Swindon areas in connection with the investigation.
It said those detained were:
• A 29-year-old man arrested in the Swindon area • A 46-year-old man arrested in west London • A 29-year-old man arrested in the Stockport area • A 40-year-old man arrested in the Rochdale area • A man whose age was not confirmed arrested in the Manchester area.
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Commander Dominic Murphy, head of the Met’s Counter Terrorism Command, said: “This is a fast-moving investigation and we are working closely with those at the affected site to keep them updated.
“The investigation is still in its early stages and we are exploring various lines of enquiry to establish any potential motivation as well as to identify whether there may be any further risk to the public linked to this matter.
“We understand the public may be concerned and as always, I would ask them to remain vigilant and if they see or hear anything that concerns them, then to contact us.
“We are working closely with local officers in the areas where we have made arrests today and I’d like to thank police colleagues around the country for their ongoing support.”
This breaking news story is being updated and more details will be published shortly.
Fourteen children aged between 11 and 14 years old have been arrested after a boy died in a fire at an industrial site.
Northumbria Police said the group – 11 boys and three girls – were arrested on suspicion of manslaughter after the incident in Gateshead on Friday. They remain in police custody.
Officers were called to reports of a fire near Fairfield industrial park in the Bill Quay area shortly after 8pm.
Emergency services attended, and the fire was extinguished a short time later.
Police then issued an appeal for a missing boy, Layton Carr, who was believed to be in the area at the time of the fire.
In a statement, the force said that “sadly, following searches, a body believed to be that of 14-year-old Layton Carr was located deceased inside the building”.
Layton’s next of kin have been informed and are being supported by specialist officers, police added.
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Detective Chief Inspector Louise Jenkins, of Northumbria Police, also said: “This is an extremely tragic incident where a boy has sadly lost his life.”
She added that the force’s “thoughts are with Layton’s family as they begin to attempt to process the loss of their loved one”, and asked that their privacy be respected.
A cordon remains in place at the site of the incident.