The Premier League is set to issue disciplinary charges on Tuesday against any clubs that have violated their financial rules for the 2021-2024 reporting period. This move comes as part of an effort to ensure fair play and sustainability in the league.
Clubs that recorded losses for the first two seasons of the latest three-season cycle were required to submit their accounts for the year ending June 2024, by December 31, 2024. The rolling period under review includes seasons 2021/22, 2022/23, and 2023/24.
Any Premier League club served with a complaint by the Premier League will have a fortnight or precisely, 14 days to respond. Following this response period, an independent commission will hear each case over a span of twelve weeks. This timeline allows sufficient time for appeals before reaching the May 24 cut-off point at season's end if necessary.
Previous breaches
In January last year, both Everton and Nottingham Forest faced charges related to breaching Profit and Sustainability Rules (PSR). These rules stipulate that clubs are in violation if they exceed maximum permitted losses of £105m over three seasons. This figure is reduced by £22m for any season spent outside of the Premier League.
These charges were tied specifically to their accounts from season 2022-23. Both cases were fully heard within last season's final months under what are known as 'standard directions' for PSR breaches. As a result, Everton was docked two points while Forest lost four points due to these violations.
Everton had previously been docked ten points in November 2023 due to another PSR breach relating to their accounts from season-ending in June 2022; however, this sanction was later reduced on appeal down six points last February.
Exemptions in PSR calculation
It's important to note that not all financial investments made by clubs count towards the £105m loss figure. Investments in infrastructure, academies, charity foundations, and women's football are treated as 'add backs' in a club's PSR calculation. These do not contribute to the potential loss figure.
These disciplinary charges serve as a reminder for Premier League clubs about the importance of maintaining financial sustainability and adhering to Profit and Sustainability Rules. The coming weeks will reveal which clubs have managed their finances effectively during this three-season cycle and which ones may face penalties for breaching these rules.
