Nottingham Forest and Everton could face points deduction after Premier League charges

There's a chance that Nottingham Forest might receive fewer points after getting accused of breaking the Premier League's profit and sustainability regulations (PSR), while Everton may see more points docked due to another violation of the same rules.

The teams need to respond to the accusations within two weeks, or else they will face a hearing from a group of unbiased individuals who will determine their penalties. Forest will probably find out what their punishment is in the beginning of April, and they will be able to contest it if they wish. Nick De Marco KC, a well-known lawyer who specializes in sports cases, has been hired to defend them.

Back in November, Everton lost 10 points after overspending by £19.5m for the 2021-22 season. The club is now waiting to see if their appeal is successful. The latest charge against them is linked to their financial records for the 2022-23 season.

It's possible that Everton might lose points twice this season due to financial rule violations, but the result of their appeal could affect the severity of their punishment. However, the appeal date hasn't been announced yet.

If Everton wins their appeal and the reasons they provided for their financial losses are taken into account, including interest on loans to build a new stadium and the negative impact of UK government sanctions on their business dealings with oligarch Alisher Usmanov, then their penalty could be reduced not just for the timeframe up to 2022, but even up to 2023.

If the appeal committee chooses to uphold the initial verdict and denies Everton's assertion, the club could potentially be docked points once again in 2023. The Premier League regulations stipulate that a decision must be reached before the conclusion of the current season.

The Premier League has announced that Everton and Forest have acknowledged they have violated the league's profitability and sustainability regulations. The reason for this is because they have incurred losses beyond the allowed limits for the evaluation term that concludes in the year 2022-23.

Football clubs are allowed to incur losses of up to £105m over a three-year period, which averages out to £35m per season. However, Forest has spent two seasons in the Championship during the most recent cycle, resulting in a capped spending limit of £61m. This means that the club can only have losses of up to £13m in both the 2020-21 and 2021-22 seasons, and £35m in the previous season.

Forest's defense is likely to be centered around their decision to wait before selling Brennan Johnson. They wanted to receive the highest possible price for their academy graduate, whose transfer fee would be considered pure profit in terms of PSR. Finally, they sold him to Tottenham for £47.5m on deadline day in September, but this was two months after the PSR compliance deadline. If they'd sold Johnson before June 30th, they would have gotten less money but still been within allowed loss limits. However, they want to argue that prioritizing long-term financial stability was better achieved through maximizing profit.

After winning the Championship playoffs in 2022, Forest invested approximately £250m in securing the services of 43 players in order to build a team that would be able to compete at the highest level in the Premier League. While the club brought in 40 new players, there were few assets that could be sold, which made Johnson's departure all the more meaningful. Last summer, Forest received several written offers for Johnson, amounting to an estimated £30m, but they declined to sell at that price, knowing that they could wait for a better offer to come along.

Forest has not made any new signings this month since they are taking a careful strategy in the transfer market. The club needs to sell some players first before they can think about strengthening Nuno Espírito Santo's team, which is currently in a position that is three places higher than the relegation zone and has a four-point lead.

Nottingham Forest has admitted that they are aware of the statement released by the Premier League, disclosing that they have been accused of breaking the league's profitability and sustainability regulations. Forest states that they will continue to work closely with the Premier League to resolve the matter and strongly believe that a just and swift decision will be made.

The team Everton, which is just above the relegation zone by one point, may face another punishment even though they have already been deducted 10 points for three out of the four years that have caused their latest issue. Everton has voiced their worries about double jeopardy to the Premier League but has been notified that it is up to the independent commission to look into their claim. Unlike the EFL, the Premier League does not have rules for limiting losses for years that have already undergone punishment.

The Everton football club expressed dissatisfaction with the regulations of the league in a written statement that talked about the charge made on Monday. The charge implicates the team for the seasons 2019-20, 2020-21, 2021-22 and 2022-23, which includes financial periods from 2019 to 2022, receiving a 10-point penalty that is being appealed at present.

The Premier League doesn't have rules that stop a team from getting in trouble for repeated financial wrongdoing, even if they've already been punished in the past. This is different from other organizations that oversee sports, like the EFL. Because the Premier League is now trying to address these issues during the season, the team must submit a PSR calculation. However, it's still subject to change because they're waiting for the outcome of an appeal.

The team is facing another complaint from the Premier League, which relates to the same financial periods that they have already been punished for. This is happening even before their appeal for the previous punishment has been heard. However, the team believes that the Premier League's rules are lacking and this is the reason for such a situation.

Everton is under the impression that they're being treated unfairly for their recent financial setbacks that stem from building their new stadium at Bramley Moore dock and by ending their affiliation with businesses linked to Usmanov, following Russia's invasion of Ukraine in February. One of these deals includes a £200m contract with USM, which helped contribute to Everton's 2022-23 financial reports.

The most recent financial report of the club has yet to be released publicly, but it has been presented to the league. It is thought that the financial losses are linked to reduced earnings from advertising and higher expenses for the stadium, rather than from money spent acquiring new players. Only two existing Premier League teams, Brighton and Luton, have spent less on purchasing players in the last five years than Everton.

The financial situation of the club is not good at the moment because the owner, Farhad Moshiri, is no longer providing funds. He wants to sell most of his shares to a company called 777 Partners, but the Premier League still needs to give its approval. 777 Partners is a company that some people do not trust, and it is possible that this new legal issue could cause them to change their minds about buying the shares.