The PL had referred the case to the Commission in March 2023 following 1 charge relating to a possible PSR breach. Everton admitted acting in breach for the 2021/22 season but pointed to significant reductions to its losses as a mitigating factor, down £76m from the previous year’s loss of £121m.
The Commission’s findings
Following a five-day hearing on 16th-20th October 2023, the Commission determined that Everton’s PSR calculation for the relevant period resulted in a loss of £124m, which exceeded the threshold of £105m permitted under the PSR. The Commission imposed an immediate 10-point deduction. The full written reasons can be accessed here.
In addition to a potential relegation, Everton faces the prospect of being sued by clubs who were relegated in the past two seasons after the chair of the Commission, David Phillips KC, indicated that Leeds United, Leicester City, Southampton, Burnley and Nottingham Forest all had “potential claims” for compensation.
Everton has announced its intention to appeal the decision which must be lodged within 14 days. Everton says it will monitor closely the decisions made in any other cases concerning PSR.
Capital Law is familiar with two of the lead KCs involved in the proceedings: Nick De Marco KC and David Philips KC who acted as lead Counsel in Cardiff City FC’s negligence claim against its insurance broker, which settled in the summer.
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