Everton and Nottingham Forest charged by the Premier League - what it could mean from deductions and more

Everton and Nottingham Forest risk having points deducted after being charged by the Premier League. The charges related to alleged breaches in the league's profit and sustainability rules.

The two clubs have been referred to an independent commission who will review the cases individually before a decision on any punishment is reached. However, if the two clubs are found to be guilty of breaking the financial rules set out by the Premier League they could be docked league points.

Any deduction would plunge both clubs' place in the top flight into huge doubt, given they are both currently perched precariously on the edge of the bottom three. Of course, Everton have already been handed a 10-point deduction this season for their spending during the 2021-22 campaign.

The Toffees are still waiting on the result of their appeal for that one, but the second charge relates to their accounts over an assessment period stretching back three seasons and ending last season, 2022-23 . Both Everton and Nottingham Forest have been given 14 days to provide a reply to charges.

Everton have already issued a strong statement on their website reading: "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."

Nottingham Forest added: "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."

Everton's potential punishment for their second charge may be impacted by the result of their first appeal, of course, but it is thought the club now run the risk of being hit with two points deductions in one season.

Under Premier League guidelines, clubs are allowed to record losses of £35m a season, or £105m over a three-season period. Given Forest spent two of the three seasons included in the assessment period in the Championship, their losses were limited to £61m.

Following Everton's initial punishment back in November, there had been suggestions of legal action from a number of relegated clubs. It was widely reported that Leeds United, Leicester City and Burnley had been looking to sue the Toffees to cover the loss of earnings caused by relegation. Such legal action may well depend on the result of the initial appeal.