Everton risk a Premier League points DEDUCTION due to breaking profit and sustainability rules
EXCLUSIVE: Everton risk a Premier League points DEDUCTION as they teeter on the brink of breaking profit and sustainability rules after recording combined losses of over £260m between 2017 and 2020 – £155m more than is allowed over a three-year period
- Everton are yet to publish their accounts for the 2020-21 Premier League season
- It is anticipated that the accounts will include another loss in excess or £100m
- A deadline of later this month has been made for all Premier League clubs to submit up-to-date accounts
Everton are preparing to negotiate with the Premier League over their financial accounts amid fears they could become the first club to breach the top flight’s profit and sustainability rules.
The club were due to publish their accounts for the 2020-21 season last December, but publication has been delayed as they seek clarification from the Premier League over how much of their losses can be offset due to the impact of Covid.
Everton recorded combined losses of over £260m between 2017 and 2020, which in ordinary circumstances would represent a clear breach of Premier League rules, which state that clubs are only permitted to lose a maximum of £105m over three years.
Farhad Moshiri could see his Everton outfit docked Premier League points amid fears they could become the first club to breach the top flight’s profit and sustainability rules
It is anticipated that the 2020-21 accounts will include another loss in excess or £100m and the club’s financial problems have worsened even further since they were forced to sever links with major sponsor Alisher Usmanov last week – which could cost them £300m over the next 20 years.
The Premier League have set a deadline of later this month for all clubs to submit up-to-date accounts, as well as forecasts for the rest of the season. The process of vetting the accounts will take a few months, with any clubs in breach to be charged at the end of the season.
Premier League rules state that clubs in breach of their spending rules can be fined or docked points, but have yet to find any of their members guilty.
The spending rules have been altered as a result of the pandemic, with the three-year assessment period extended to four. The two Covid-affected seasons when crowds were largely absent will be put together and an average taken, to provide a figure for the allotted three years.
The Toffees were forced to sever links with major sponsor Alisher Usmanov last week – which could cost them £300m over the next 20 years – following Russia’s invasion of Ukraine
Everton still appear at risk of being found in breach however, leading them to petition the Premier League for allowances to be made due to Covid.
In their 2019-20 accounts £67m of the club’s losses were directly attributed to the pandemic.
The Premier League have indicated they will permit so-called add-backs due to Covid, but have no fixed criteria as to what they include, with each submission to be assessed on a case-by-case basis.
Everton’s concern about their losses was shown last summer when their transfer spending was dramatically curtailed.
After investing around £450m on new players over the last six years, Everton brought in four players on free transfers last summer and signed Demarai Gray from Bayer Leverkusen for £1.7m.
This is the latest setback for Everton who are plummeting towards a relegation battle
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