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Nottingham Forest and Everton face points deduction after Premier League spending breach charges


Forest understood to have made losses in excess of £105m over three years, while Everton face new penalty after previous points deduction

https://www.telegraph.co.uk/football/2024/01/15/nottingham-forest-everton-premier-league-charged-points/

Nottingham Forest and Everton have been hit with new Premier League charges for allegedly breaching financial regulations.
 
 
Both clubs, however, believe they have strong cases to fight the prospect of fresh penalties under the new fast-track punishment model. Everton, who are already fighting to get their current sanctions overturned, believe their imminent appeal hearing will effectively render the new charge groundless.
 
They have already argued any overspend was due to loan repayment costs that were entirely incurred from stadium development costs.
 
Forest, meanwhile, will argue for dispensation to include profits from the sale of Brennan Johnson two months after the end of the period in question.
 
Both clubs were informed just hours before the official announcement that they were facing charges.
 
During talks between the league and the clubs, Forest are understood to have confirmed they were effectively in breach of rules which allow losses of £105 million across three years.
 
Only the “most exceptional cases”, including the 115 charges facing Manchester City, are exempt from new Premier League rules that any club charged with a standard financial rule breach must be completed within 12 weeks.
 
The new rules compelled Everton, Forest and all other clubs to file 2022-23 accounts by December 31, instead of March under the old rules.
 
Their defences have already been prepared by top lawyers as beleaguered club executives are now referred to an independent commission.
 
In Everton’s case, stadium costs rather than player trading will be cited as the root cause of the overspend.
 
The club’s net spend on players among teams has been among the lowest in the Premier League for consecutive years.
 
Everton sold the likes of Richarlison and Anthony Gordon, but the cost of their new £550 million ground at Bramley-Moore Dock is blamed within the club for pushing them over the edge.
 
Allowable stadium costs have been a matter of fierce debate between Everton and the Premier League for years.
 
When the club was hit with a 10-point deduction for the previous cycle, a major factor in the league’s case was that loans were working capital needs, which are not deductible. 
 
Everton will continue to maintain, however, that these payments should be classified as infrastructure costs and therefore excluded.
 
Although infrastructure costs are generally not applicable to Premier League profit and loss calculations, the competition has previously claimed associated loans at Everton could not be discounted.
 
Forest, meanwhile, have enlisted leading sports lawyer Nick De Marco as they attempt to avoid becoming the third top-flight club to be punished over alleged breaches.
 
A total of 30 new players arrived in the season after Forest secured promotion to the Premier League in 2022, ending an absence of 23 years from the top division.
 
The team’s record signing had been Morgan Gibbs-White from Wolves at £25 million, which increased to £30 million when the club avoided relegation.
 
Other significant buys included Taiwo Awoniyi (£17.5 million from Union Berlin), Neco Williams (£17 million from Liverpool) and Danilo (£16 million from Palmeiras).
 
Yet it was the signings of free agent Jesse Lingard (who was earning a basic £80,000 a week before bonuses), Paris St-Germain goalkeeper Keylor Navas and a litany of players who never featured which appeared to be calculated, yet expensive, gambles.
 
Clubs are permitted to make financial losses of £105 million over a three-year period, with Forest reporting an annual loss of £45.6 million in their last accounts. In the previous year, ending June 2021, they recorded a loss of £34.4 million, reduced to a loss before tax of £15.5 million.
 
In providing Forest’s defence sports lawyer De Marco will focus on the sale of Johnson to Tottenham, as Telegraph Sport reported on January 2.
Johnson was sold for £47.5 million on deadline day – a record sale for the club – and Forest will insist that they would have received a far lower fee if they had accepted an offer earlier in the summer.
 
Brentford failed with two offers of £30 million and £35 million for the Wales international in June and July respectively.
 
Sources close to Everton also maintain privately that they believe the Merseyside club are within this year’s limits. The club is also still waiting to find out whether its proposed takeover by 777 Partners is to get the green light.
 
At Goodison Park, the departure of £250,000-a-week James Rodríguez had been a major relief for the wage bill as he left the club in the autumn of 2021.
 
Over the ensuing year, Richarlison was sold to Tottenham for around £50 million, while Gordon fetched more than £40 million from Newcastle.
 
However, Amadou Onana, Dwight McNeil and Neal Maupay arrived for multi-million pound fees, and there were other unforeseen factors in the last campaign that caused headaches.
 
Everton’s original deduction centred on interest payable on loans to build their new stadium at Bramley-Moore Dock. The club calculated £18 million headroom within spending limits, but the Premier League argued they had overspent by £7.9 million.
 
To offset costs amid a global spending squeeze since, sanctions brought against then sponsor Alisher Usmanov in March 2022 may have proven costly last season. That said, Everton did secure their biggest sponsorship deal to date in June 2022.
 
To offset some of those losses, Everton secured a “club record main partner agreement” with Stake.com, the online casino, in June 2022.
 
Everton were handed the biggest punishment in Premier League history by an independent commission in December.
 
They have appealed against the decision to dock them 10 points, which will be heard and concluded before the end of the season.
 
There is deep resentment behind the scenes at smaller clubs around the rapid punishments facing the likes of Forest and Everton while bigger clubs still await their fate in connection with more complex cases.
 
Manchester City were charged in February with 115 alleged breaches and that case remains ongoing with the club strongly denying the charges.
 
Chelsea are also being investigated after referring evidence to the Premier League in connection with transfer deals struck during the Roman Abramovich era.
 
Forest are currently 15th in the Premier League, while Everton are a point and a place above the relegation zone.
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On 14/01/2024 at 21:11, Strike said:

I think Nkunku is not playing because he's injured again - hip injury. I doubt Mudryk would play over Nkunku at any point. 

Agreed, but that was my point: for whatever reason, Nkunku does NOT play and has not played for us this season yet...we are in January! He has only had short cameos--perhaps a full half? The options available is also quality in a team, not just its starting XI.
We can question Werner, Mount, and Pulisic, who were hardly world beaters, but together they offered good options on the left--different characteristics too! Pulisic and Mount more mercurial (former even more so), while Werner was that consistent 6.5-7 rating.

For me the drastic drop in quality is fairly palpable, esp on the wings. Madueke for ex IMO wouldn't sit on the bench for any top PL club.

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Football > England. FA Cup.

Wolverhampton vs BrentfordLIVE0:0

16 January 2024 at 20:30.
 
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Football > England. FA Cup.

Bristol City vs West Ham United

16 January 2024 at 20:45.
 
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Former Man City financial adviser claims the club will be 'relegated AT LEAST' if FFP charges are proven - and insists 'the scale is on a completely different level' to the rest of the league

  • Manchester City will face off with Premier League over 115 alleged breaches
  • Former legal advisor Stefan Borson said the allegations against City are 'serious'

https://www.dailymail.co.uk/sport/football/article-12979173/Former-Man-City-financial-advisor-claims-club-relegated-FFP-charges-proven.html

A former Manchester City financial adviser has revealed that the charges levelled against the club are on a 'completely different scale' to the rest of the league and relegation could be the least of their worries.

The current reigning champions were charged by the Premier League with 115 alleged breaches of financial regulations in February after opening an investigation in 2018.

Throughout a long-running saga the competition and the club have remained tight-lipped – and both declined to comment when contacted.

Speaking on talkSPORT, Stefan Borson, who was previously an advisor at the Etihad, was asked how different City's charges are to Everton and Nottingham Forest.

He replied: 'The scale is on a completely different level. There's no question, if those charges are proven, this will end in at least relegation!

'There is a suggestion of conspiracy over a 10-year period. They're suggesting that City's main sponsorship agreements are not for £50-60million but are for actually £8m and the whole thing was a sham and a whole load of people lied.

'A whole load of executives from multiple companies were in on it. The club also lied to multiple parties, professionals, people doing due diligence on the company, the league, UEFA, the FA.

'If proven this is super serious. Nobody would argue that. City themselves in their submissions they will say this is an allegation of the most serious nature.'

Asked whether they will clear the name, he added: 'I think they will clear their name because a case of this nature has to have a level of cogent proof which seems to me impossible to present to independent comission.

'Furthermore it seems to me highly unlikely that the conduct that is alleged has taken place over a ten year period with the sorts of individuals that are involved in the club. That also will be the starting of the independent commission. 

'For any court or tribunal, to suggest that this number of people have been this dishonest is a massive call.'

In November, Mail Sport revealed that a date for City's showdown with the league has been initially scheduled for the late autumn of 2024.

Those with knowledge of the situation believe that a conclusion may not follow until the end of next season – which is when City boss Pep Guardiola's current contract is due to expire.

It is understood that what has been a highly confidential process is currently at the stage where statements are being taken from witnesses – which is likely to remain the case until next spring.

Should the trial go ahead on time, a verdict would be likely around the summer of 2025.

Delays, however, may well push the proceedings back further. And should either party find the eventual outcome unpalatable it would be difficult to imagine a world in which they would not appeal. Such a scenario would add significant time.

Should they need to, City may well explore further avenues, although they would not be able to go to the Court of Arbitration for Sport, where they successfully had their UEFA-delivered Champions League ban overturned.

Premier League chief executive Richard Masters confirmed this week that a hearing date has been set for City's unprecedented 115 alleged rule breaches — but refused to say when it will take place.

Masters was responding to a question from committee chair Dame Caroline Dinenage, who in reference to Everton's second charge of breaching spending rules, asked: 'Do you understand fans' frustration that Manchester City is taking so long?' 

'Yes, but they are very different charges,' Masters replied. 

'The volume and character of the charges laid against Manchester City are being held in a completely different environment. 

'I can't give you any details beyond saying a date has been set for that proceeding. I can't say when that is, but that is progressing.'

Edited by Vesper
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Mohamed Salah close to tears after being forced off with a hamstring injury in Egypt's 2-2 draw with Ghana at AFCON... as Liverpool fans bemoan their 'unbelievably bad luck' ahead of Premier League title run-in

  • The Liverpool star left the field in the final minutes of the first half AFCON clash
  • Salah is seeking a maiden continental crown with Egypt  at the tournament 

https://www.dailymail.co.uk/sport/football/article-12980623/Mohamed-Salah-forced-injury-half-Egypts-crucial-AFCON-clash-against-Ghana.html

80197653-12980623-image-a-21_17056122932

80204009-12980623-image-a-48_17056204420

Edited by Vesper
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Аrsеnаl vs Сrystаl Раlасе

20 January 2024 at 13:30.
 
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