LIVERPOOL, England (AP) — Everton and Nottingham Forest are facing an independent commission over alleged violations of the Premier League’s profitability and sustainability regulations. Forest becomes the third top-flight club to be charged with a breach of the league’s financial rules, reporting losses that exceed the permitted amount over a three-year period. Meanwhile, Everton, who are already appealing a 10-point deduction for the previous reporting period, have also been charged with a further breach. Manchester City faced over 100 financial rule violations last year. Both Everton and Forest could face fines or points deductions under the guidelines.
According to a Premier League statement, Everton FC and Nottingham Forest FC have acknowledged breaching the League’s Profitability and Sustainability Rules. The cases have now been referred to the chair of the Judicial Panel, who will appoint separate commissions to determine the appropriate sanction. The independent commissions’ final decisions will be made public on the Premier League’s website.
Everton Football Club issued a statement acknowledging the Premier League’s decision to refer the breach of profit and sustainability rules to an independent commission. The club is currently appealing a previous sanction and believes the Premier League’s rules have clear deficiencies. Everton intends to defend its position during the ongoing appeal and any future commission hearings.
Nottingham Forest also released a statement acknowledging the Premier League’s charge of a breach of the profitability and sustainability rules. The club expressed confidence in a fast and fair resolution and will cooperate fully with the Premier League.
New guidelines have been implemented to expedite decisions regarding profitability and sustainability rule violations. Clubs were required to submit their accounts earlier than usual, and any breaches and subsequent charges were confirmed within 14 days. The league has set a backstop date for appeals, ensuring a resolution before the end of the season.
Forest, who signed 42 players since their promotion in 2022, believed they had complied with the regulations regarding allowable losses. Everton’s breach follows years of financial mismanagement under owner Farhad Moshiri, with losses of £260 million across two COVID-19-affected seasons. The club also faces the unique situation of fighting two sanctions in the same season, putting their top-flight position at risk.
The profitability and sustainability rules assess adherence to financial regulations in the Premier League. Clubs are allowed a maximum loss of £105 million over three seasons, with certain deductions for specific costs. Forest’s permitted losses are lower due to their time in the Football League, amounting to £61 million.
This is only the second time such action has been taken, following Manchester City’s charges last year. The outcome of City’s case is pending, with a verdict expected to take considerable time. Chelsea also faced fines for historical breaches, while the Premier League and English FA continue to investigate.
In conclusion, Everton and Nottingham Forest now face the possibility of fines or points deductions due to breaches of the Premier League’s profitability and sustainability rules. Independent commissions will determine the appropriate sanctions for each club. The outcome of these cases could have significant consequences and potentially impact the clubs’ positions in the top flight.