Nottingham Forest and Everton are anxiously awaiting their fates as they face potential points deductions for breaching the Premier League’s Profitability and Sustainability Rules (PSR). Both clubs were charged by the league on January 15th, but while Forest are expected to learn their punishment this week, Everton may have to wait until next month for a resolution.
For Nottingham Forest, this marks their first brush with the PSR regulations since earning promotion back to the Premier League last season after a 23-year absence. As a newly-promoted side, Forest were permitted losses of up to £61 million across the previous three seasons, significantly less than the £105 million limit imposed on established top-flight clubs.
Despite that lower threshold, Forest went on a massive spending spree upon their return to the Premier League, breaking the record for most signings in a single window with 21 new players brought in. That aggressive approach in the transfer market always carried the risk of breaching the league’s financial rules.
An independent commission heard Forest’s case on March 7th and 8th. Under Premier League rules, a decision must be handed down within one week of the hearing’s conclusion, meaning Forest will likely learn their fate by Wednesday, March 15th at the latest.
The club are bracing for a potential points deduction that could see them slide down the table and into the thick of the relegation battle. Saturday’s 1-1 draw at Luton Town left Steve Cooper’s side sitting 17th, just three points above the drop zone heading into the international break.
If Forest are docked more than three points, they would fall into the bottom three with nine crucial games remaining to secure their Premier League status. Their campaign resumes on Saturday, March 30th when they host Crystal Palace at the City Ground, by which time they will know the severity of any sanctions.
According to The Sun, Forest are expected to face a points deduction in the range of 4-6 points, which would be a hammer blow to their survival hopes at this late stage of the season. The club will reportedly argue in mitigation that they remained in compliance with PSR limits after the £50 million sale of star forward Brennan Johnson to Tottenham last summer.
While that transfer fell outside the financial period in question, Forest will make the case that they only held off on selling Johnson in order to secure a better fee, and that his eventual departure brought them back in line with the regulations. It remains to be seen whether that argument will sway the independent panel to lessen any sporting sanction.
For Everton, the situation is even more precarious. The Merseyside club are facing a second PSR charge this season, having already been docked 10 points in November for prior breaches, a penalty that was later reduced to six points on appeal.
Those sanctions saw Everton plummet down the table to 17th place, just one spot and one point above the relegation zone. They have been unable to pull away from danger in the months since, with their 2-2 draw against Nottingham Forest on Sunday leaving them 16th, level on points with the Reds but with a game in hand.
Now, Everton are staring down the possibility of further points deductions that could ultimately seal their fate. According to The Sun, the Toffees’ hearing for their latest charge has been scheduled for the end of this week, likely March 16th or 17th.
However, the report suggests Everton will have to wait until next month to learn their punishment, with a resolution not expected until after the Easter holiday in early April. That would leave the club in an agonizing state of limbo, not knowing if or how many points they could be docked as they fight for their lives on the pitch.
Everton have argued that these new PSR charges cover the same financial periods they have already been sanctioned for, and thus constitute a form of “double jeopardy.” The club contends that the Premier League’s rules do not include any protections against being charged twice for the same offenses, a flaw they say must be addressed.
“The Premier League does not have guidelines which prevent a Club being sanctioned for alleged breaches in financial periods unlike other governing bodies, including the EFL,” Everton said in a statement. “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 is being asked to defend a second Premier League complaint before the outcome of the appeal on the first complaint has even been heard. The Club takes the view that this results from a clear deficiency in the Premier League’s rules.”
Some have accused the Premier League of unfairly targeting smaller clubs like Everton and Forest while allowing the big-spending elite to avoid serious punishment. Manchester City, for example, are facing over 100 charges related to their financial dealings from 2009-2018, but have yet to face any sanctions nearly a year after the league’s investigation was announced.
Critics argue that docking points from clubs fighting relegation at such a late stage of the season, when they have no ability to go back and rectify their spending, is overly punitive and hands a massive advantage to their rivals who managed to comply with the rules.
“It’s disgusting the way Everton are being treated,” talkSPORT pundit Andy Goldstein said. “If you’re telling me that Man City, one of the biggest clubs in the world who have won four of the last five titles, are not going to get punished but Everton are, that is a disgrace. That is a complete and utter disgrace.”
Others believe the Premier League must take a hard line on enforcing its financial regulations, even if it means inflicting painful sanctions on individual clubs. They argue that only the serious threat of points deductions will curb the rampant overspending that has threatened the stability and competitive balance of the league.
“If this is what it takes to make clubs live within their means, to force them to stop paying crazy wages and transfer fees they can’t afford, then the Premier League has no choice,” said former Liverpool defender Jamie Carragher. “For too long, the rules have been toothless. Now they’re finally showing they’re willing to bite, and that will be a shock to the system for some.”
The Premier League has said it is committed to wrapping up these disciplinary proceedings before the end of the season to ensure any sporting sanctions are applied in the current campaign. The league has set a final deadline of May 24th, five days after the season concludes, for all rulings and appeals to be finalized.
That condensed timeline has left clubs like Everton and Forest scrambling to mount their defenses while still scrapping for every point in the relegation dogfight. For the fans, it is a bitter pill to swallow, knowing their clubs could be docked points through no fault of their own.
“The Premier League does this all in the name of sustainability and protecting clubs,” Everton supporter Sarah Halpin told The Guardian. “But how are you protecting us, the supporters? Our club could be sent down through no fault of our own. How is that fair? Sustainability means nothing if you rip the heart out of these communities.”
Ultimately, the Premier League finds itself trying to strike a delicate balance between upholding its financial rules and not overstepping with draconian punishments. Sanctions must be firm enough to deter future breaches, but not so severe as to essentially relegate clubs by the league’s own hand.
The rulings in the Everton and Nottingham Forest cases, set to come down in the weeks ahead, will not only shape the conclusion of this season’s relegation scrap, but will set important precedents for the Premier League’s financial enforcement going forward. The integrity of the competition, and the faith of supporters in the fairness of the system, may well hang in the balance.
For now, all Everton and Forest can do is await their fates and fight for every point on the pitch, knowing that even their best efforts may not be enough to overcome the damage done off it. The final reckoning is near, and the price of failure could be catastrophic.