Sport nationEverton and Nottingham Forest have both been charged by the Premier League for breaching the league’s Profitability and Sustainability Rules (PSR). These rules state that clubs can lose a maximum of £105 million over a rolling three-year period, or £35 million per season[11][14]. For promoted clubs like Forest, the limit is lower at £61 million total over three seasons, since they spent two of those in the Championship[14].
In November 2023, Everton were initially handed a 10-point deduction, the biggest sporting sanction in Premier League history, for exceeding the permitted losses by £19.5 million in the three years up to the 2021-22 season[4][10][19]. Everton appealed the decision, calling it “wholly disproportionate and unjust”[19].
On February 26, 2024, an independent Appeal Board partially upheld Everton’s appeal on two of nine grounds, citing legal errors made by the original commission[10][15]. As a result, Everton’s points deduction was reduced from 10 to 6 points with immediate effect[1][4][8][10][13][15]. This moved Everton up to 15th place on 25 points, five points above the relegation zone[15]. The club said it felt “vindicated” by the appeal outcome[10][13].
However, Everton are not out of the woods yet. They have been charged with breaching PSR again for the three-year period ending in 2022-23[14][15]. Some of these financial periods overlap with the timeframe they were already sanctioned for, raising concerns about “double jeopardy”[14]. Everton criticized the Premier League for lacking guidelines that prevent a club being punished twice for the same periods[14]. The outcome of Everton’s first appeal will have a major bearing on the latest charge against them[14].
Meanwhile, Nottingham Forest are also facing a PSR breach charge for the three seasons up to 2022-23[5][11][14][16]. As a promoted club, Forest’s losses were capped at £61 million over that period[5][14]. The extent of their overspending is unknown, but reports suggest it is less than Everton’s £19.5 million, with Forest’s main mitigation being the £50 million sale of Brennan Johnson to Tottenham in August 2023[5][14].
Forest will have their case heard by a separate three-person independent commission on March 7-8[5][20]. A verdict is expected by early April[16][20]. Forest can then appeal any decision, with the entire process required to conclude by May 24[16][20].
The potential sanctions facing Forest are unclear and will depend on the severity of their breach. Some reports indicate a points deduction is likely[5][16], with The Sun claiming a minimum six-point penalty could apply to both Forest and Everton[16]. However, football finance expert Kieran Maguire predicts Forest may only get a 3-4 point deduction, half of Everton’s, due to mitigating factors like the Johnson sale[5]. A fine is another possibility[16].
Even a small points deduction could be devastating for Forest, who sit 17th, just four points above the relegation zone[5][8][20]. There are concerns the uncertainty is weighing on the players and manager[8]. The club has hired leading sports lawyer Nick De Marco KC to argue their case[14][20].
The wider context is that the Premier League is facing scrutiny over its financial regulations and disciplinary process. Critics have questioned the fairness and consistency of the rules, especially the fact that:
- Clubs can be sanctioned multiple times for overlapping financial periods[14]
- There are no clear guidelines on the link between the scale of the breach and the appropriate punishment[5][14]
- The Premier League is pursuing these cases while simultaneously fighting the implementation of an independent regulator[19]
Manchester City are also facing 115 charges of financial rule-breaking dating back to 2009[11][14][19], while Chelsea are under investigation as well[14]. How these cases are handled will be closely watched.
The Premier League maintains it is simply following its rules and acting in the interests of the competition’s sustainability and integrity. In the Everton appeal, it considered a six-point penalty the “minimum but sufficient sanction required”[15]. The league says it is satisfied with the current disciplinary process[15].
But for the clubs and fans involved, the stakes could not be higher, with hundreds of millions in revenue, historic top-flight status, and the fate of entire communities in the balance. The next few months will be pivotal, as English football grapples with the challenge of enforcing financial fair play in an era of ever-spiraling spending. All eyes will be on the Everton, Forest and Man City cases to see whether the Premier League’s regulations can withstand legal scrutiny and deliver fair, consistent outcomes. The very future of the game as we know it could hang in the balance.
Citations:
[1] https://www.reuters.com/sports/soccer/everton-win-appeal-reduce-points-deduction-2024-02-26/
[2] https://theathletic.com/5327147/2024/03/08/nuno-espirito-santo-nottingham-forest-points/
[3] https://en.wikipedia.org/wiki/Kieran_Maguire
[4] https://www.nytimes.com/2024/02/26/world/europe/everton-premier-league-points-deduction.html
[5] https://inews.co.uk/sport/football/nottingham-forest-ffp-hearing-prediction-2942821
[6] https://uk.linkedin.com/in/kieran-maguire-a085033
[7] https://www.espn.com/soccer/story/_/id/38944119/everton-premier-league-points-deduction-charges-explained
[8] https://www.nottinghampost.com/sport/football/football-news/nottingham-forest-everton-ffp-penalty-9125280
[9] https://www.liverpool.ac.uk/management/staff/kieran-maguire/
[10] https://theathletic.com/5299946/2024/02/26/everton-points-penalty-premier-league/
[11] https://www.reuters.com/sports/soccer/everton-forest-face-points-deduction-after-being-charged-breaching-premier-2024-01-15/
[12] https://muckrack.com/kieran-maguire-1
[13] https://www.evertonfc.com/news/3912657/club-statement
[14] https://www.theguardian.com/football/2024/jan/15/premier-league-charge-nottingham-forest-everton
[15] https://apnews.com/article/everton-premier-league-points-deduction-8a3d0c203fe993ee850f46e23a74d6e0
[16] https://www.skysports.com/football/news/11661/13049423/everton-and-nottingham-forest-charged-q-a-time-frame-points-deduction-what-about-man-city
[17] https://www.youtube.com/watch?v=WWzXoVCrDNA
[18] https://www.youtube.com/watch?v=FIvyq7k6m7A
[19] https://www.aljazeera.com/sports/2023/12/1/everton-file-appeal-against-10-point-deduction-by-premier-league
[20] https://www.nottinghampost.com/sport/football/football-news/nottingham-forest-ffp-charge-hearing-9128658
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