According to the Guardian, Saints are among a number of clubs that could seek compensation from the Premier League after Everton was sanctioned for breaking financial fair play rules. An independent commission determined that the club acted “irresponsibly” and exceeded permitted losses under the Premier League’s profitability rules.
PA reported that the Premier League published a comSouthampton’mission judgment from May which granted five clubs 28 days from Friday to pursue a compensation claim.
Those clubs are reportedly Southampton, Leeds United, Nottingham Forest, Leicester City and Burnley.
Leeds, Leicester, Burnley and Southampton, who were relegated in recent seasons, have previously threatened to take legal action and a ruling from David Phillips KC in May agreed the clubs could apply for compensation through the Premier League if Everton were found to have breached FFP rules.
The points deduction drops Everton to 19th in the table and leaves major question marks over whether a sale of the club by current owner Farhad Moshiri to an American investment firm, 777 Partners, will proceed.
The commission concluded: “The cause of Everton’s PSR difficulties was the fact that it overspent (largely on its purchase of new players and its inability to sell other players), and because it finished lower in the league than it had projected in FY 2022 (16th against the projected 6th – causing a loss of expected income of c.£21 million).
“Everton’s understandable desire to improve its on-pitch performance (to replace the non-existent midfield, as Mr Moshiri put it in evidence) led it to take chances with its PSR position: those chances resulted in it exceeding the £105 million threshold by £19.5 million.
“The position that Everton finds itself in is of its own making – it is Everton’s responsibility to ensure that it complies with the PSR regime. The excess over the threshold is significant. The consequence is that Everton’s culpability is great.
“We take into account the fact that Everton’s PSR trend over the relevant four years is positive, but cannot ignore the fact that the failure to comply with the PSR regime was the result of Everton irresponsibly taking a chance that things would turn out positively.
“Further, Everton was less than frank in its dealings with the Premier League over the stadium interest issue.
“The reality is that Everton failed to manage its finances so as to operate within the generous threshold of £105m. Its mismanagement led to that threshold being exceeded by £19.5million.
“This was a serious breach that requires a significant penalty.”
The club immediately indicated their intention to appeal against the sanction. It is understood the appeal will be heard during the course of the current season.
In a statement in response to the decision, Everton said: “Everton Football Club is both shocked and disappointed by the ruling of the Premier League’s Commission.
“The club believes that the Commission has imposed a wholly disproportionate and unjust sporting sanction.
“The club has already communicated its intention to appeal the decision to the Premier League. The appeal process will now commence and the club’s case will be heard by an Appeal Board appointed pursuant to the Premier League’s rules in due course.
“Everton maintains that it has been open and transparent in the information it has provided to the Premier League and that it has always respected the integrity of the process.
“The club does not recognise the finding that it failed to act with the utmost good faith and it does not understand this to have been an allegation made by the Premier League during the course of proceedings.
“Both the harshness and severity of the sanction imposed by the Commission are neither a fair nor a reasonable reflection of the evidence submitted.
“The club will also monitor with great interest the decisions made in any other cases concerning the Premier League’s Profit and Sustainability Rules.
“Everton cannot comment on this matter any further until the appeal process has concluded.”
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