Everton and Forest charged over alleged financial breaches

Everton and Nottingham Forest both face potential fines and points deductions after being charged by the Premier League over alleged breaches of financial regulations.

The league believe both clubs have exceeded the losses allowed over a three-year reporting period, as per their profitability and sustainability regulations.

As a result, both have been referred to an independent commission that will look into the matter further before imposing possible sanctions.

Everton have already received a 10-point deduction this term for other alleged breaches, which they are appealing.

A statement from the Toffees said: "Everton acknowledges the Premier League's decision to refer a breach of profit and 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.

"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."

Meanwhile, Forest — who become the third side to face sanctions for financial issues alongside Everton and Manchester City — also acknowledged the decision on their website.

A statement said: "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."

The Premier League released their own statement, confirming they will not comment further until the respective commissions have reached conclusions.

It said: "Everton and Nottingham Forest have each confirmed to the Premier League that they are in breach of the league's profitability and sustainability rules.

"This is as a result of sustaining losses above the permitted thresholds for the assessment period ending season 2022-23. 

"In accordance with Premier League rules, both cases have now been referred to the chair of the judicial panel, who will appoint separate commissions to determine the appropriate sanction. 

"Commissions are independent of the Premier League and member clubs. The proceedings are heard in private with the commissions' final decisions made public on the Premier League's website. 

"The league will make no further comment until that time."

Points deductions could have significant ramifications for both clubs, with Everton currently one point clear of the relegation zone and Forest only three ahead of the Merseysiders.