The Premier League has charged Everton FC with alleged breaches of its Financial Fair Play (FFP) rules, relating to last season.
The club which has been referred to an independent commission is said to have recorded losses of £371.8m ($388.3m) over the past three years.
According to Premier League rules, clubs are allowed to lose a maximum of £105m ($128.3m) over that time.
The Premier League executives were made aware of Everton’s situation following a joint letter written by Leeds chief executive, Angus Kinnear, and Burnley chairman, Alan Pace. At the time of their joint letter, both clubs were threatened with relegation and both also indicated their right to make legal claims against the Premier League and Everton.
Confirming the charges, the Premier League said in a statement;
“In accordance with Premier League Rule W.82.1, the Premier League confirms that it has today referred an alleged breach of the League’s Profitability and Sustainability Rules by Everton Football Club to a Commission under Premier League Rule W.3.4. The assessment period for which it is alleged that the Club is in breach is the period ending Season 2021/22.
“The proceedings before the Commission will, in accordance with Premier League Rule W.82, be confidential and heard in private. Under Premier League Rule W.82.2, the Commission’s final award will be published on the Premier League’s website. The League will be making no further comment until that time.”
Reacting to the development, Everton said they are disappointed with the decision, adding that they are “prepared to robustly defend” their position to the commission.
The club said in a statement;
“Everton Football Club is disappointed to hear of the Premier League’s decision to refer an allegation of a breach of Profit & Sustainability regulations to an independent commission for review.
“The club strongly contests the allegation of non-compliance and together with its independent team of experts is entirely confident that it remains compliant with all financial rules and regulations. Everton is prepared to robustly defend its position to the commission. The club has, over several years, provided information to the Premier League in an open and transparent manner and has consciously chosen to act with the utmost good faith at all times.”
