Everton and Nottingham Forest break spending rules and could face points deduction this season

Everton and Nottingham Forest could be handed points deductions this season for breaching Profit and Sustainability rules.

PSR rules state that clubs can only lose a maximum of £105million over a three-year cycle, or £35million-a-season.

The new guidelines have been brought in to ensure that any potential breaches are met with punishments in the same season they have been raised, with a fine or points deduction a possibility.

As a result both will be referred to an independent commission for breaches covering the 2020/21, 2021/22 and 2022/23 seasons, as well as the 2019/20 season in Everton's case.

An Everton statement read: “Everton Football Club acknowledges the Premier League’s decision to refer a breach of Profit & Sustainability rules (PSR) for the assessment period ending with the 2022/23 season to an independent Premier League commission.

“This relates to a period which covers seasons 2019/20, 2020/21, 2021/22 and 2022/23. It therefore includes financial periods (2019/20, 2020/21 and 2021/22) for which the club has already received a 10-point sanction. The club is currently appealing that sanction.

“The Premier League does not have guidelines which prevent a club being sanctioned for alleged breaches in financial periods which have already been subject to punishment, unlike other governing bodies, including the EFL. As a result – and because of the Premier League’s new commitment to deal with such matters “in-season” – the club is in a position where it has had no option but to submit a PSR calculation which remains subject to change, pending the outcome of the appeal.

“The club must now defend another Premier League complaint which includes the very same financial periods for which it has already been sanctioned, before that appeal has even been heard. The Club takes the view that this results from a clear deficiency in the Premier League’s rules.

“Everton can assure its fans that it will continue to defend its position during the ongoing appeal and, should it be required to do so, at any future commission – and that the impact on supporters will be reflected as part of that process.”

A statement from Nottingham Forest read: "Nottingham Forest acknowledges the statement from the Premier League confirming that the club has today been charged with a breach of the league’s Profitability and Sustainability Rules.

"The club intends to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution."

Should a points deduction be issued it would leave both sides in danger of relegation.

Everton have already been issued a ten-point deduction this season for breaching profit and sustainability, however, an upturn in form has meant that they currently sit a point above the relegation zone.

The Toffees are in the process of appealing that punishment, which is expected to be heard by the end of February, and feel that if they were successful in that appeal then they would therefore be compliant in the latest cycle.

Meanwhile, Nottingham Forest spent around £250million on new signings since being promoted in 2022.

Nuno Espirito Santo's side currently sit in 15th position with 20 points, just four points above 18th-place Luton.

More to follow...