Everton furiously labelled the Premier League‘s rules ‘deficient’ after being hit by a second charge on Monday for breaching financial regulations that has left them facing another points deduction this season.
The club, along with Nottingham Forest who have also been charged for similar breaches, have been referred to a second independent commission panel.
Everton have already been docked 10 points this term for a loss of £124.5million in a previous accounting period.
This fresh charge will not be brought before a commission until the appeals process for the original punishment is heard. That appeal is not expected to be finished until next month, which leaves the Premier League in a race against time to push through any further sanctions before the end of the season.
Should Forest and Everton appeal the commission’s decision, the situation could farcically drag on beyond the end of the season. All appeals must be concluded by May 24 but the final fixtures are on May 19, meaning that the season could be over but the final league positions may not be determined until the cases are finalised.
Everton and Nottingham Forest have been charged with breaking Premier League spending rules, with the Toffees already having been deducted 10 points earlier this season
Everton were docked 10 points earlier this season for breaching Financial Fair Play regulations
The League has insisted that, under a new system brought in this season, charges are to be ‘fast-tracked’ and dealt with by the end of the campaign. Everton and Forest have a fortnight to respond to the charges, with both clubs vowing to fight their corner.
Everton took a strong stance in their official statement on Monday and said that there are ‘deficiencies’ in the League’s rules, which could see them punished twice for the same alleged offence, with a lot of overlaps in the time periods between the separate cases.
‘The Premier League does not have guidelines which prevent a club from being sanctioned for alleged breaches in financial periods which have already been subject to punishment, unlike other governing bodies, including the EFL,’ read Everton’s statement.
‘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 been heard.
The club takes the view that this results from a clear deficiency in the Premier League’s rules.’
Everton’s original punishment was due to losses of £19.5m over the £105m threshold which clubs are permitted in a rolling three-year period. That threshold has been in place since 2013 and has not accounted for inflation in football since its introduction.
The two parties disagree over what are ‘permissible’ losses, with Everton arguing the costs of their new stadium contribute to their financial issues. Under PSR rules, some losses are deemed permissible, such as infrastructure costs — pertinent in Everton’s case of building a new stadium at Bramley-Moore Dock — plus investment in youth or their women’s team.
Large groups of supporters gathered to show their fury amid the Premier League’s ruling first time around, which saw Everton slapped with a 10-point deduction
The Toffees will also point to the fact that they sit third-bottom of the ‘net spend table’ for the last five years, ahead of only newly-promoted Luton, and Brighton.
Everton’s prospective buyers 777 Partners insist that the club’s second spending charge will not affect their takeover plans, although it could impact on the price they pay, which will drop in the event of relegation.
Mail Sport understands that Everton are more likely to be fined, rather than docked points. However, this will be later determined by the commission. Forest, meanwhile, intend to fully cooperate with the League on the matter.
Mail Sport understands a key plank of the club’s defence is likely to involve the sale of homegrown star Brennan Johnson to Tottenham for £47.5m in August. As calculations are made over a three-year period ending on June 30, the Johnson deal will count towards the reckoning for the next financial period, rather than the one they have been charged for.
Everton could face a second points penalty following Monday’s revelation
Forest reported an annual loss of £45.6m in their last set of accounts. They 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 accounting period, but nearly £20m out of pocket.
Forest have spent nearly £300m on transfers since they were promoted in May 2022 and also have a hefty wage bill. A club spokesman added: ‘The club has fully complied with its reporting obligations regarding the League’s revised profit and sustainability rules. Promotion will always create challenges.’
