Reds’ punishment taken into account for Toffees verdict

NOTTINGHAM Forest’s punishment for breaking financial regulations was taken into account when the outcome of Everton’s second breach was determined.

Last month, the Reds were docked four points for falling foul of the Premier League’s Profitability and Sustainability Rules. The club have appealed against the sanction and a hearing is expected to take place this month.

Relegation rivals Everton were hit with a 10-point deduction earlier in the campaign, which was reduced to six on appeal. But the Toffees have been docked two more points for a second PSR breach, with another appeal planned. The written reasons explaining the decision to inflict a new two-point penalty on Everton state how the independent commission took into account what had happened in Forest’s case.

The Reds were found to be £34.5m over their permitted £61m threshold for losses over the last three years. The Premier League pushed for a six-point deduction – eight points to reflect Forest’s excess was 77 per cent greater than Everton’s breach in 2021-22, but with two discounted for the Reds’ early plea and exceptional co-operation.

The written reasons for a two-point punishment in Everton’s second case state: “In reaching that conclusion, the commission has had regard to the following matters – a sanction must reflect the aims of the PSR in the wider context of the Premier League, being a joint venture of all the clubs.

“A sanction must uphold the integrity of the PSR. It must also ensure public confidence in the Premier League.

“The Commission concludes that a sanction of two points is proportionate to those aims, taking into account the particular mitigation advanced by Everton and accepted by the Commission.

“The recent decision in the Premier League v Nottingham Forest, PJLP 2024/1. Although that decision is subject to appeal, it presently stands, and the commission takes the view that the penalty in that case is broadly consistent with the penalty imposed by the commission here.

“The penalty imposed on Nottingham Forest before mitigation was six points. Everton’s sanction in the two cases, FY22 (financial year 2022) and FY23 (financial year 2023), after taking account of the effect of “double counting” but before any further mitigation, is nine points, which is justifiably higher as Everton has exceeded the Upper Loss Threshold in two consecutive years.”