Everton and Nottingham Forest have been charged with breaking Premier League spending rules.
Everton were docked 10 points earlier in the season for breaching Financial Fair Play (FFP) regulations. Again. they have now been charged for their more recent accounts, while Forest have also been caught.
It is understood that Everton are furious at the latest sanction and will, as they did the first time round, appeal the verdict.
‘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 (PSR),’ the Premier League said in a statement.
‘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. The League will make no further comment until that time.’
In a statement, Everton said: ‘Everton Football Club acknowledges the Premier League’s decision to refer a breach of Profit & 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.’
Meanwhile, part of Forest’s defence is now likely to involve the sale of Brennan Johnson to Tottenham for £47.5million in August.
As FFP calculations are made over a three-year period ending on June 30, the Johnson deal will count towards the reckoning for 2021-2024 rather than 2020-23.
Clubs are permitted to make financial losses of £105m over a three-year period, with Forest reporting an annual loss of £45.6m in their last accounts.
Forest say they could have sold Johnson to Brentford in June for about £30m, which would have put them in a healthier financial state for the 2020-23 period, but nearly £20m out of pocket overall.
For the club’s sustainability they argue that accepting nearly £50m for Johnson in August was better than accepting £30m earlier in the summer.
A Forest spokesman said: ‘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.’
The charges levelled against Manchester City in February for 115 alleged breaches is a case that remains ongoing.