Two more clubs to suffer wrath of Premier League over FFP violations

Everton and Nottingham Forest are facing significant scrutiny under the Premier League's profitability and sustainability regulations (PSR). Both clubs are on the brink of receiving formal charges for alleged financial breaches. 

The consequences of these breaches could range from financial penalties to point deductions, a severe punishment that can impact their standings in the league, as per The Athletic

Everton's financial challenges are multifaceted. A major factor contributing to their struggles is the development of their new stadium, a massive project with costs exceeding £700 million. This expenditure has significantly strained the club's finances, leading to their current precarious situation. 

The club was previously penalised with a 10-point deduction for a breach related to the 2021-22 season, which they are actively appealing. This deduction has had a notable impact on their position in the league standings, placing them perilously close to the relegation zone, per Mirror Online

Upon their promotion to the Premier League, Nottingham Forest embarked on an ambitious spending campaign, investing around £250 million in new players. 

This aggressive strategy, while aimed at bolstering their squad for top-flight competition, has put them at significant risk of breaching financial regulations. The club's permitted losses are lower than the standard £105 million over three years, capped at £61 million, due to their time in the Championship.

Both Everton and Nottingham Forest are preparing robust defences against the potential charges. Nottingham Forest may cite the sale of Brennan Johnson to Tottenham Hotspur for £47.5 million as a strategic move to balance their financial books. 

Everton, on the other hand, is expected to highlight the expenditure on their new stadium project as a key factor in their financial situation.

The deadline for the clubs to submit their accounts for the 2022-23 season was December 31. The independent commission hearings that follow will be crucial in determining the nature of any charges and the severity of subsequent punishments. Both clubs retain the right to appeal against any decisions, a process that could extend beyond the end of the season, adding uncertainty to their future operations.

As of the latest reports from Sport Bible, Everton's position is just above the relegation zone, making them particularly vulnerable to any additional points deductions. Nottingham Forest, while in a slightly better position, is not far ahead, emphasizing the high stakes involved. The final decisions on these cases, including any appeals, will significantly affect both clubs' league positions and future strategies.