Everton and Nottingham Forest have been accused by the Premier League of breaking its financial regulations.
An independent panel has been tasked with investigating the two clubs for any violations of profit and sustainability regulations in their 2022–2023 financial statements.
Premier League rules state that clubs will not be punished if they lose more than £105 million in three seasons, or £35 million every year.
Clubs who violate those guidelines run the danger of being penalized or losing points.
Everton is presently contesting a 10-point reduction from an earlier offense.
In a statement, the Premier League stated that Nottingham Forest and Everton “have each confirmed that they are in breach of the league’s profitability and sustainability rules”.
“This is due to sustaining losses above the allowed thresholds for the assessment period ending season 2022–2023,” it continued.
“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 clubs now have 14 days to provide their official answers, and the hearings must be finished in 12 weeks according to league regulations. The case must be settled by June 1st, 2024, and the appeal hearings must take place before May 24th.
If a club’s computation during the relevant time yields a loss greater than £105 million, they are in violation of the profit and sustainability rules (PSR). However, the barrier is lowered by £22 million for each season a team plays in the Championship during the relevant period.
During the three-year assessment period, Nottingham Forest played two seasons in the Championship; hence, the club’s maximum loss is £61 million.
Under new rules intended to expedite the reporting process and guarantee that any penalties were levied within a season when the alleged infraction occurred, clubs were required to submit their accounts for 2022–2023 by December 31st.
After the reporting date, the Premier League has fourteen days to notify clubs of their compliance status.
Despite having played one extra game, Everton is only one point above Luton Town, who are in the relegation zone, in the Premier League standings, while Nottingham Forest, in 15th place, is four points above the drop zone.