The Premier League has charged both Everton and Nottingham Forest with breaching its financial rules, referring them to an independent commission for alleged breaches of profit and
sustainability rules in their accounts for the 2022-23 season. 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, which could include fines or points deductions.
Everton, currently appealing a 10-point deduction from a previous charge, and Nottingham Forest have both confirmed their breach of the league's profitability and sustainability rules, as they sustained losses above the permitted thresholds. The cases are now referred to the chair of the judicial panel, who will appoint separate commissions to determine the appropriate sanctions.
The financial rules breach occurs if a club's calculation results in a loss exceeding £105 million over the relevant period, with the threshold reducing by £22 million for each season spent in the Championship during the assessment period. Nottingham Forest's maximum loss is capped at £61 million due to their two seasons in the Championship within the three-year assessment period.
Clubs were required to submit their accounts for the 2022-23 season by December 31 under new rules aimed at accelerating the reporting process. The Premier League had 14 days from the reporting date to inform clubs of any breaches.
Everton, currently 17th in the Premier League, acknowledged the decision and expressed their commitment to defending their position, emphasizing a perceived deficiency in the Premier League's rules. Nottingham Forest, confident of a speedy and fair resolution, join Everton and Manchester City as the only top-flight clubs charged with breaking profit and sustainability regulations.
These charges come amid a time of significant uncertainty for Everton, with the owner agreeing to sell a majority stake, awaiting approval from the Premier League. Nottingham Forest, following promotion in May 2022, have spent significantly on new signings, and the breach may center around the sale of Brennan Johnson to Tottenham after the accounting deadline.
The outcome of these cases could have implications for both clubs, including potential fines or points deductions, affecting their standing in the league. Photo by Sue Adair, Wikimedia commons.