Premier League Financial Fair Play Rules
The Premier League’s PSR regulations state that clubs cannot lose more than £105 million over a three-year period, or £35 million per season. For clubs recently promoted from the EFL like Nottingham Forest, the permitted losses are lower at £61 million over three years.
Charges Against Nottingham Forest and Everton
In January 2024, both Nottingham Forest and Everton were charged by the Premier League for allegedly breaching the PSR rules by sustaining losses above the permitted thresholds for the assessment period ending in the 2022/23 season. [1][2][10][11][14]
Everton had already been deducted 10 points earlier this season for a previous PSR breach covering 2019-20 to 2021-22. They are appealing this initial 10-point deduction. [2][10][19]
Nottingham Forest’s Case
Forest’s alleged breach centers around the £47.5 million sale of academy graduate Brennan Johnson to Tottenham in September 2023, which fell just outside the assessment period cutoff of June 30, 2023. [10][20]
Forest is expected to argue that had they sold Johnson earlier for a lower fee (around £30 million offered by Brentford), they would have complied with the rules. By holding out for a higher transfer fee after June 30th, the entire profit from Johnson’s sale counted as overspending for that period. [10][20]
Forest spent around £250 million on 43 new players after promotion in an attempt to build a competitive Premier League squad, with limited player sales to offset costs before Johnson’s transfer. [10]
Everton’s Case
Everton’s latest charge covers alleged losses from 2019-20 to 2022-23, which includes seasons (2019-20 to 2021-22) that were part of their previous 10-point deduction. This has led to claims of potential “double jeopardy.”[2][10][19]
Everton is expected to cite mitigating factors like interest paid on loans for their new stadium, lost commercial revenue from suspended deals linked to Alisher Usmanov after Russia’s invasion of Ukraine, and player sales made in 2022-23 as reasons to avoid a second points deduction. [8][17][19]
Timing and Process
Independent commissions have been appointed to hear the cases for both clubs, with the proceedings being held in private. The commissions’ final decisions, including any sanctions, will be made public. [1][2][10][11][14]
The Premier League aims to resolve all cases related to the 2022-23 season, including any appeals, by May 24th – just five days after the 2023-24 season concludes. This raises the possibility of points deductions impacting the final league standings and relegation battle after the season ends. [4][18]
Nottingham Forest’s two-day hearing is expected to take place on March 7-8, with a decision likely by early April. Both clubs will have the opportunity to appeal any sanctions imposed. [4][16]
Everton’s appeal against their initial 10-point deduction is expected to be decided this week, which could influence the outcome of their second charge and Forest’s case as it may set a precedent. [17][20]
Potential Implications
There is a belief among some Premier League club executives that Nottingham Forest will face a points deduction, potentially plunging them into the relegation zone depending on the severity. [20]
If Everton’s appeal is partially successful in reducing their initial 10-point penalty, it could make them less vulnerable to a second hefty deduction that may relegate them. However, an unsuccessful appeal could see them docked more points for the latest breach. [17][18]
The outcomes of these cases are being closely watched, as they could set important precedents for how future PSR breaches are handled, including the charges faced by Manchester City. [8][17]
In summary, while the Premier League aims to resolve these financial fair play cases this season, the potential for points deductions impacting the final league standings and relegation battle remains a real possibility. The rulings will not only have significant consequences for Nottingham Forest and Everton but could also shape how similar cases are dealt with in the future.
Citations:
[1] https://www.nottinghampost.com/sport/football/football-news/nottingham-forest-everton-ffp-penalty-9125280
[2] https://www.mirror.co.uk/sport/football/news/what-evertons-ffp-premier-league-32166060
[3] https://theathletic.com/5205422/2024/01/16/nottingham-forest-ffp-nuno/
[4] https://www.skysports.com/football/news/11661/13049423/everton-and-nottingham-forest-charged-q-a-time-frame-points-deduction-what-about-man-city
[5] https://www.manchestereveningnews.co.uk/sport/football/football-news/premier-league-give-everton-points-28607814
[6] https://www.nottinghampost.com/sport/football/football-news/nottingham-forest-ffp-everton-nuno-9125270
[7] https://www.footballinsider247.com/nottingham-forest-points-deduction-wyness-cant-believe-latest-on-draconian-psr-punishment/
[8] https://jobsinfootball.com/blog/everton-financial-fair-play/
[9] https://www.manchestereveningnews.co.uk/sport/football/football-news/nottingham-forest-boss-nuno-espirito-28708615
[10] https://www.theguardian.com/football/2024/jan/15/premier-league-charge-nottingham-forest-everton
[11] https://www.tntsports.co.uk/football/premier-league/2023-2024/everton-and-nottingham-forest-charged-with-breaching-premier-league-financial-rules_sto9964500/story.shtml
[12] https://www.youtube.com/watch?v=8YJ9Tg2eHNk
[13] https://www.mirror.co.uk/sport/football/news/nottingham-forest-everton-points-deduction-32216201
[14] https://www.nbcsports.com/soccer/news/everton-nottingham-forest-charged-by-premier-league-for-financial-breaches
[15] https://www.nottinghampost.com/sport/football/football-news/nottingham-forest-nuno-newcastle-united-9091413
[16] https://www.nottinghampost.com/sport/football/football-news/gary-neville-predicts-nottingham-forest-9132346
[17] https://inews.co.uk/sport/football/everton-ffp-appeal-prediction-2901634
[18] https://talksport.com/football/1764643/everton-nottingham-forest-premier-league-points-deduction/
[19] https://www.independent.co.uk/sport/football/everton-points-deduction-premier-league-ffp-b2478948.html
[20] https://inews.co.uk/sport/football/nottingham-forest-points-deduction-premier-league-rivals-2914672