Everton vow to ‘robustly defend’ themselves after being referred to independent commission

Everton has been embroiled in a bitter dispute with the Premier League after being accused of breaking their spending rules.

The club immediately pledged to “vigorously defend itself” against charges that it breached the Premier League’s profitability and sustainability rules by spending too much last season.

Everton have become the second Premier League club to be charged with breaching financial rules after Manchester were hit with a staggering 101 charges last month covering a period of nine years.

While any punishment is unlikely to affect their battle for survival under Sean Dyche this season due to the speed of the disciplinary process, the club could face significant sporting penalties if found guilty in addition to a large fine, such as a points deduction, transfer embargo or be forced to adhere to strict spending controls.

Sportsmail revealed last March that Everton faced the prospect of disciplinary action for excessive spending after posting losses of £371.8m between 2018 and 2021, and that several Premier League clubs were considering legal action if they failed to do so. they were charged.

Burnley and Leeds wrote to the league in May to question Everton’s £371.8m losses.

Burnley and Leeds sent a legal letter to the Premier League ahead of the final games of the season in May questioning whether Everton had breached the rules, which cap losses at £105m over three years, but were approved by the Premier League’s legal department. top category. the following month as a result of the bonuses due to the Covid-19 pandemic. The threatened legal action of £200 million never materialized.

However, the disciplinary charge issued last night relates to Everton’s 2021/22 accounts, which have been sent to the Premier League, but have not been published. The club has until Friday to present its accounts at Companies House and has promised to do so.

Everton’s most recent accounts up to June 2021 showed losses of £120.9m, taking the three-year rolling figure above £370m, causing consternation to other clubs who had kept their expenses under control and they did not claim such significant Covid allowances.

Despite such widespread discontent, Everton continued to spend heavily last season, paying a combined £30m for Vitaliy Mykolenko and Nathan Patterson in the January transfer window, as well as handing out big salaries to loan signing Dele Alli. , while the club’s financial position worsened considerably the following month when they were forced to cut ties with Alisher Usmanov after he was banned.

However, Everton rushed the £60m sale of Brazilian striker Richarlison to Tottenham before the end of June last year, which will have helped offset these losses.

In the 2019/20 financial year, Usmanov’s company, USM Holdings, was responsible for £42m of Everton’s £64m sponsorship income, so the loss of that income will have had an effect catastrophic in the accounts of last season.

Everton rushed through the £60m sale of Brazilian striker Richarlison to Tottenham before the end of June last year, however, which will have helped offset these losses.

As with City earlier this year, Everton received little notice yesterday of the impending Premier League charge, which was posted on their website at 4:35pm.

The Premier League referred the matter to Murray Rosen KC, chairman of its Judicial Panel, who will assemble an independent three-person commission to hear a case that is likely to drag on for several months. Everton have the right to take the matter to the Premier League Appeal Panel if they are not satisfied with the commission’s verdict.

“In accordance with Premier League rule W.82.1, the Premier League confirms that it has today referred an alleged breach of the league’s profitability and sustainability rules by Everton Football Club to a committee under rule W.3.4 of the Premier League,” read a Premier statement. . ‘The evaluation period for which the Club is alleged to be in default is the period ending the 2021/22 season.

The Toffees headed into the international break sitting 15th in the Premier League

‘Proceedings before the Commission, in accordance with Premier League Rule W.82, will be confidential and heard in private. Pursuant to Premier League Rule W.82.2, the Commission’s final award will be published on the Premier League website. The League will not make any further comments until then.

Everton appeared surprised by the charge but quickly made clear their intention to contest it vigorously.

“Everton Football Club is disappointed to learn of the Premier League’s decision to refer an allegation of breach of earnings and sustainability regulations to an independent commission for review,” they said. ‘The Club strongly rejects the allegation of non-compliance and, together with its independent team of experts, is fully confident that it continues to comply with all financial rules and regulations.

‘Everton are prepared to vigorously defend their position before the commission. The Club has, for a number of years, provided information to the Premier League in an open and transparent manner and has consciously chosen to act in the utmost good faith at all times. The Club will not comment further at this time.