Everton, Forest face points deduction after being charged for breaching Premier League spending rules

“The club intends to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution,” Nottingham said in a statement quoted by British media.

General view of the corner flag inside the Goodison Park stadium. | Photo Credit: Action images via Reuters

Nottingham Forest and Everton face a points deduction after the clubs have been charged by the Premier League for a breach of their profitability and sustainability rules (PSR), the league said on Monday.

Everton has already been handed a separate 10-point deduction this year over its finances in the 2020-21 season, which meant it fell into the relegation zone.

Both clubs have now been referred to the chair of the Judicial Panel, the Premier League said, who will appoint an independent commission to determine the appropriate sanction.

According to the Premier League’s Financial Fair Play regulations, clubs are permitted to lose a maximum of 105 million pounds ($133.63 million) over a three-year period.

“Everton can assure its fans that it will continue to defend its position during the ongoing appeal and, should it be required to do so, at any future commission – and that the impact on supporters will be reflected as part of that process,” Everton said.

The Merseyside club has filed an appeal against its initial points deduction, which it labelled “wholly disproportionate and unjust”.

Forest, which has not previously run afoul of the regulations, become the third club to have been charged by the Premier League, following Everton and champion Manchester City.

“The club intends to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution,” Forest said in a statement.

The East Midlands club was in the second-tier Championship until 2022, where clubs are permitted a maximum loss of 39 million pounds across three seasons, or 13 million pounds per season, meaning its permissible losses over the last three campaigns would add up to 61 million pounds.

Upon its promotion ahead of the 2022-23 season, Forest broke the record for most transfers (21) by a Premier League club in the close-season window.

Earlier this year, Manchester City was also referred to an independent commission over more than 100 alleged breaches of finance rules since the club was acquired by the Abu Dhabi-based City Football Group in 2008. No verdict has been reached in that case.

Clubs in England’s top flight have been docked points before, with Middlesbrough having three points deducted in 1997 when it failed to fulfil a fixture, while Portsmouth was given a nine-point penalty in 2010 when the financially troubled club entered administration.