The Premier League has accused Everton and Nottingham Forest of violating its financial rules.
An independent commission will review alleged breaches of profit and sustainability rules in the clubs’ 2022–23 accounts.
According to Premier League regulations, clubs can incur a maximum loss of £105 million over a three-season period, or £35 million per campaign, before facing sanctions such as fines or points deductions.
In a statement, the Premier League noted that both Everton and Nottingham Forest have confirmed their breaches of profitability and sustainability rules. This stems from sustaining losses above the permitted thresholds for the assessment period ending in the 2022–23 season. The league, following its rules, has referred both cases to the chair of the judicial panel, who will appoint separate commissions to determine appropriate sanctions.
The clubs now have 14 days to submit their formal responses. According to league rules, hearings must conclude within 12 weeks, and any appeals should be heard before May 24, 2024, with resolution before June 1.
Profit and sustainability rule breaches occur if a club’s calculation over the relevant period results in a loss exceeding £105 million. This threshold is reduced by £22 million for each season a club spends in the Championship within the relevant period.
Nottingham Forest, having spent two seasons in the Championship within the three-year assessment period, faces a maximum loss of £61 million.
Under new reporting rules, clubs had to submit their 2022–23 accounts by December 31. The Premier League had 14 days from the reporting date to inform clubs of any breaches.
Everton, currently 17th in the Premier League, acknowledges the referral to an independent commission. The club received a 10-point deduction in November, the largest in Premier League history, for losses amounting to £124.5 million until 2021–22. Everton is set to appeal this decision before the end of the season.
In response, Everton expressed concern over facing another complaint covering the same financial periods. The club pledged to defend its position during the ongoing appeal, ensuring supporters’ perspectives are considered in the process.
Thousands of Everton fans protested the initial points deduction, with regional politicians, including Mayors Steve Rotheram and Andy Burnham, expressing concerns.
Nottingham Forest, confident of a fair resolution, joins Everton and Manchester City as the only top-flight clubs charged with breaking profit and sustainability regulations. Forest has employed sports lawyer Nick de Marco to argue their case, focusing on the sale of Brennan Johnson to Tottenham for up to £45 million after the accounting deadline.
The charges against Everton coincide with the club’s pending ownership change and the construction of a new stadium. Forest, having spent significantly on new signings since promotion, aims for a fair resolution as their case unfolds. Manchester City’s similar case, involving over 100 alleged rule breaches between 2009 and 2018, remains ongoing, while Chelsea faces potential scrutiny over payments linked to former owner Roman Abramovich.