LAST UPDATE | 15 Jan
EVERTON AND NOTTINGHAM Forest have confirmed to the Premier League that they are in breach of the competition’s financial rules, the league has said.
The league issued a statement on Monday afternoon which stated the clubs had confirmed to it that they had breached profitability and sustainability rules (PSR) after sustaining losses above the permitted threshold for the assessment period up to and including the 2022-23 season.
Both cases have now been referred to the chair of the independent judicial panel, who will appoint separate commissions to determine the appropriate sanction.
Club Statement. pic.twitter.com/iFgMCpsR5G
— Everton (@Everton) January 15, 2024
The clubs could face points penalties, with Everton having been docked 10 points last November over an earlier PSR breach. That sanction is the subject of an appeal.
The league’s statement, which came shortly after each club had released their own statements confirming a referral, read: “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).
“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.”
Everton vowed to “defend their position” in a statement that 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.
“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.”
Forest’s statement was less combative, saying: “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.”
All top-flight clubs had to hand in accounts for the 2022-23 campaign by 31 December under new rules to ensure any punishments are imposed during the season when the transgression took place.
Premier League regulations allow clubs to lose a maximum of £105 million (€122 m) over a three-season period or £35m (€40.7m) per campaign.
However, Forest spent two seasons in the Championship within the three-year assessment period, with the maximum loss set at £61m (€71m).
Everton are 17th in the Premier League, just one point above third bottom Luton, while Nottingham Forest are four points clear of the relegation zone in 15th.
The bombshell announcement could massively shake up the fight for Premier League survival if points are deducted.
Any hearing would have to be concluded by 8 April, with the final games of the league season scheduled for 19 May.
