Newcastle United’s PSR and FFP stance as Everton and Nottingham Forest respond to Premier League charges

Everton and Nottingham Forest have been charged by the Premier League for breaching its financial rules. Under Profit and Sustainability Rules (PSR), Premier League clubs are allowed to lose £105m over a three-year period with both Everton and Forest judged to have breached these rules for the assessment period ending season 2022/23.

Both clubs were informed that they had breached these rules on Monday and have been referred to the chair of the judicial panel who will appoint independent commissions to deal with their cases on a separate basis. Everton have already been handed a 10-point deduction this season and could be facing yet another points deduction, although they have appealed the ruling that saw them deducted ten points in November. Here is how both clubs responded to the charges:

Nottingham Forest’s response

In a statement released by Forest, the club acknowledged the charges and made clear their intention to ‘cooperate fully’ with the Premier League. The statement read: ‘Nottingham Forest acknowledges the statement from the Premier League confirming that the club has today been charged with a breach of the league’s Profitability and Sustainability Rules. 

‘The club intends to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution.’

Everton’s response

Everton, meanwhile, posted a defiant response, criticising a ‘clear deficiency in the Premier League’s rules’. A statement on their website read: ‘The Premier League does not have guidelines which prevent a club being sanctioned for alleged breaches in financial periods which have already been subject to punishment, unlike other governing bodies, including the EFL.

‘As a result - and because of the Premier League's new commitment to deal with such matters "in-season" - the club is in a position where it has had no option but to submit a PSR calculation which remains subject to change, pending the outcome of the appeal.

‘The club must now defend another Premier League complaint which includes the very same financial periods for which it has already been sanctioned, before that appeal has even been heard. The club takes the view that this results from a clear deficiency in the Premier League's rules.

‘Everton can assure its fans that it will continue to defend its position during the ongoing appeal and, should it be required to do so, at any future commission - and that the impact on supporters will be reflected as part of that process.’

Newcastle United's pledge

Newcastle United, meanwhile, have not been charged with any breaches of financial rules, despite posting losses after tax of £73.4m for the 12 months ending June 30, 2023. Although Newcastle’s losses over the last three years total to more than £105m, the club have not breached PSR guidelines because money spent on the academy, women's football, charity and various other expenditures, as well as depreciation, are added back to the loss, resulting in an overall loss of less than £105m.

Newcastle United CEO Darren Eales has recently reiterated the club’s need to work within these guidelines, stating: "We're compliant in the year we're talking about here and our plans are always to be compliant going forward. That is part of our business plan and part of our model.”