Everton and Nottingham Forest found guilty of breaching the Premier League’s Profit and Sustainability rules

Sean Dyche during Everton v Burnley

Sean Dyche stood in his technical area during game between Everton and Burnley

Everton have been found guilty of breaching the Premier League’s profit and sustainability rules for a second time. 

The Toffees were hit with an unprecedented 10-point deduction in November and now face the prospect of another penalty in the same season.

Nottingham Forest have also been found guilty of a breach and they too face the prospect of a points deduction this season.

As per widespread reports, Everton and Forest have been found guilty by the Premier League and will be referred to an independent commission that will decide their punishment.

These can range from points deductions, transfer bans, fines and suspended punishments, based on the severity of the alleged breach.

It is understood that Everton are set to be found guilty by the Premier League of breaching profitability and sustainability regulations.

Both clubs will now be referred to an independent commission.

Under the profit and sustainability rules (PSR), clubs are allowed to lose £105m over three seasons (or £35m a season) but certain costs can be deducted.

These include investment in youth development, infrastructure, community and women’s football. There is also mitigation taken into account for seasons affected by the COVID-19 pandemic.

It remains to be seen how much Everton and Forest have overspent by. They are ready to ‘robustly’ appeal the decision by the Premier League, with an appeal already underway regarding Everton’s previous alleged breach.

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Sources: Everton confident of avoiding second points deduction

As mentioned, any punishment imposed on both Everton and Forest will come into force this season.

Due to the length of time the appeal process will take, they face the prospect of only learning their fate after the completion of the campaign’s fixtures, with the deadline for their appeal verdicts being May 24.

As a result, clubs will finish the season not knowing their final league position or even whether they will be relegated.

Reports earlier today claimed that Everton’s likely punishment will be a six-point deduction. This would leave them second-bottom of the table, seven points adrift from safety.

However, TEAMtalk sources have indicated that the Merseyside club are confident that their appeal will be successful, and that they will not face another points deduction.

Everton release statement in response to alleged PSR breach

Everton have released a response to the alleged breach on their official website.

It reads: “Everton Football Club acknowledges the Premier League’s decision to refer a breach of Profit & Sustainability rules (PSR) for the assessment period ending with the 2022/23 season to an independent Premier League commission.

“This relates to a period which covers seasons 2019/20, 2020/21, 2021/22 and 2022/23. It therefore includes financial periods (2019/20, 2020/21 and 2021/22) for which the Club has already received a 10-point sanction. The Club is currently appealing that sanction.”

“The Premier League does not have guidelines which prevent a club being sanctioned for alleged breaches in financial periods which have already been subject to punishment, unlike other governing bodies, including the EFL.

“As a result – and because of the Premier League’s new commitment to deal with such matters “in-season” – the Club is in a position where it has had no option but to submit a PSR calculation which remains subject to change, pending the outcome of the appeal.

“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 even been heard.

“The Club takes the view that this results from a clear deficiency in the Premier League’s rules.

“Everton can assure its fans that it will continue to defend its position during the ongoing appeal and, should it be required to do so, at any future commission – and that the impact on supporters will be reflected as part of that process.”

Nottingham Forest respond to alleged PSR breach

Nottingham Forest have also provided a brief statement in response to their alleged charge.

“Nottingham Forest acknowledges the statement from the Premier League confirming that the club has today been charged with a breach of the league’s Profitability and Sustainability Rules,” the statement reads.

“The club intends to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution.”

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