Everton and Nottingham Forest were referred to an independent commission by the Premier League on Monday after admitting breaching financial rules.
The alleged breaches of the league’s profitability and sustainability rules relate to the 2022-23 season and leave both clubs at risk of points being deducted.
With Everton and Forest currently locked in a relegation battle, this would put their top flight status in serious doubt.
Everton have already been deducted 10 points this season for going over the limit of defeat at the end of the 2021/22 season.
The Merseyside club are appealing against that sanction, which ranks as the biggest points sanction in Premier League history.
“Everton FC and Nottingham Forest FC have each confirmed to the Premier League that they are in breach of the league’s Profitability and Sustainability Rules (PSR),” the Premier League said in a statement.
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“This is a result of sustaining losses above the allowable limits for the assessment period ending in the 2022-23 season.
“In accordance with Premier League rules, both cases have now been referred to the chairman of the refereeing committee, who will appoint separate panels to determine the appropriate sanction.
“The committees are independent of the Premier League and the member clubs. Proceedings are heard in private and the final decisions of the committees are published on the Premier League website.”
Both cases have now been referred to the chairman of the independent judicial commission, who will appoint separate panels to determine the appropriate sanction.
“Clear deficiencies in the rules”
Everton promised to “defend their position” in a statement which said: “The Premier League does not have guidelines preventing a club from being sanctioned for alleged breaches in financial periods that have already been sanctioned, unlike other governing bodies.
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“As a result – and due to the Premier League’s new commitment to deal with such matters ‘in-season’ – the club is in a position where it has had no choice but to submit a PSR calculation which remains subject to change, pending the outcome of appeal.
“The club must now defend another Premier League complaint involving the same financial periods for which it has already been sanctioned, before this appeal has even been heard.
“The club believes this arises from a clear deficiency in Premier League rules.”
Forest’s statement was less combative, saying: “Nottingham Forest acknowledges the statement from the Premier League confirming that the club has today been charged with breaching the league’s Profitability and Sustainability Rules.
“The club intends to continue to co-operate fully with the Premier League in this matter and is confident of a swift and fair resolution.”
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All top-flight clubs had to hand in accounts for the 2022-23 season by December 31 under new rules to ensure that any punishments during the season in which the offense took place were meted out.
Premier League regulations allow clubs to lose a maximum of £105 million ($133 million) over a three-season period, or £35 million per campaign.
However, Forest spent two seasons in the Championship within the three-year assessment period, with the maximum loss set at £61m.
Everton are 17th in the Premier League, just one point above third-bottom Luton, while Nottingham Forest are four points clear of the relegation zone in 15th.
The bombshell announcement could massively rock the Premier League survival race if points are deducted.
Any audition should be completed by April 8, with the final games of the season scheduled for May 19.
Source: AFP