Everton and Nottingham Forest charged with breaching Premier League’s profitability and sustainability rules

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.

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”.

The club are already appealing against the severity of that punishment for their overspending in the three-year period up to the end of the 2021-22 season.

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 said: “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.”

In a statement, Nottingham Forest said they intend “to continue to co-operate 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, while Everton are 17th, one place above the relegation zone.

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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.”