Everton and Nottingham Forest have been accused of breaching the Premier League’s financial regulations. The two clubs have been asked to appear before an independent commission after being accused of breaching profit and sustainability regulations in their 2022-23 accounts.
Premier League rules state that clubs can lose up to £105m in a three-year period (or £35m in a single season) before facing penalties. If a club breaks the rules, they can be fined or deducted points. For example, Everton are appealing a 10 point deduction from an earlier charge.
Premier League Statement
The Premier League said in a statement that Everton and Nottingham Forest “have each confirmed that they are in breach of the league’s profitability and sustainability rules”.
“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,” the statement added.
Profit and sustainability rules require clubs to account for losses of more than £105m over the relevant period, though this threshold is lowered by £22m per season spent in the Championship during that period.
Nottingham Forest spent two seasons in the Championship within the three-year assessment period, meaning the maximum loss for the club is £61m.
Under the new rules, clubs were required to submit their 2022-23 accounts by 31 December in order to expedite the reporting process and make sure any penalties were applied during the season in which the alleged breach occurred.
