The Premier League has profit and sustainability rules (PSR) – and Everton and Nottingham have broken them. Things could now get serious for the Toffees in particular
Similar to the UEFA rules on Financial Fair Play, there are also regulations in the English Premier League that are intended to ensure the fairest possible competition. These include the profit and sustainability rules (PSR). These regulate the amount of money a club is allowed to lose per season. To put it simply, in the Premier League, a club is not allowed to make a loss of more than €122 million over a three-year period, or €40.6 million per year.
Back in November, Everton FC caused a stir when they were deducted ten points by the league for breaching the aforementioned PSR rules in the 2021/22 season. The Toffees, who allegedly overspent their budget by almost €23 million for the period in question, deemed the penalty to be a “completely disproportionate and unjust sporting sanction” and appealed against the decision, which is still pending.
Thresholds broken
Now, however, the next trouble is on the horizon, as the Premier League announced on Monday that the prescribed target for the 2022/23 season has also been breached – by Nottingham Forest as well as Everton FC. According to the announcement, both clubs have already acknowledged that their losses for the assessment period were above the permitted thresholds.
The league went on to explain that both cases would now be referred to an independent commission, which in turn “must decide on an appropriate sanction”. No further statements will be made on the matters until a decision has been reached.
As the not yet final judgment against Everton from November shows, there is no shying away from point deductions – and this could have dramatic consequences for both clubs, as both are in danger of relegation.
Everton currently have 27 points, but if the ten-point deduction becomes legally binding, they will be down to 17 points – just one more than 18th-placed Luton Town. Nottingham currently occupy 16th place with 20 points.
Both clubs reacted differently. Nottingham announced their intention to cooperate, while Everton claim to have identified “a flaw in the Premier League rules” because they “could now be punished twice for the same period”. The Toffees are referring to the three-year clause, which covers the period from 2019/20, 2020/21, 2022/23.
