Everton referred to independent commission over financial rules

Just when we thought we were out of the woods.

It's going to be a real dilemma for them. if they hit us with a points deduction and we are relegated, we could well go out of business. How does that help anyone? Much better to fine us, and compensate whinging-arse Burnley.

"If I don't go to the matches, if I get rid of my face over the turnstiles, if I don't converse with them… then perhaps they'll forget I was ever here and not blame me when the shit really hits the fan."

Absolutely not a chance we'll wriggle off this – as always, an example needs to be made and who better?

A sizeable fine would make things worse. How about real community service for the board like 8 hours/week working in a food bank or picking up trash for a year?

Dyche is about the best we could have right now... The squad we have now must be kept in best possible shape.

C'mon Dom, Andros, we need you guys!

Now Dyche is giving us a fighting chance, they have thought "Fuck it!! Let's sink them good and proper!!!"

We've spent the grand sum of absolutely fuck-all and the Premier League themselves confirmed they'd signed off all transfers as we referred them to them first.

This will be interesting because Man City will be expected to get the same punishment which will cost them a league title and their manager.

It may well cost us our Premier League status but at the very least, it may well finally rid us of this disgusting gang of putrid clueless bastards who run us. Every last one of them makes me sick. Crooks.

This could go a few ways, we could get relegated and possibly go out of business. We get relegated and someone gets a bargain with us as a Championship club (similar to Gillette and Hicks got with Liverpool) or we get a large fine, maybe a transfer ban (like Chelsea did) and Burnley get compensation, like West Ham had to do over Tevez and Masherano.

Also, I'm assuming Moshiri will have an army of highly paid lawyers ready to take the Premier League to the cleaners over auditing us and signing the spending off?

Are the Premier League gonna put one of its founding members and the biggest clubs in the country out of business when Manchester City have been bang at it? Fulham are spending massively, you can't tell me Nottingham Forest aren't outside the Profitability and Sustainability Rules.

It's all a joke.

Difficult to blame the fans, we have sacked all the managers, I wonder who has been Chairman during this period?

I thought that the club were in constant contact with the Premier League over this and that was why Richarlison was sold before 31 July and that was keeping us just onside. What's caused the rethink?

Different people at the FA decided to do some more digging? Who initiated that? Are they being lobbied behind the scenes?

If it's a points deduction, then that will relegate us. If it's a transfer ban, that will be very damaging.

It's a shocking state of affairs, our board should hang their heads in shame, incompetence doesn't cover it.

Will this cause for some assets sales at the end of this season? Who knows… but how the hell has the club been allowed to flirt and invite such attention again? It must surely mean a new board at the end of this season!

New stadium, new hopes, new beginning.

UTFTs!

Everton Football Club is disappointed to hear of the Premier League's decision to refer an allegation of a breach of Profit & Sustainability regulations to an independent commission for review.

The Club strongly contests the allegation of non-compliance and together with its independent team of experts is entirely confident that it remains compliant with all financial rules and regulations.

Everton is prepared to robustly defend its position to the commission. The Club has, over several years, provided information to the Premier League in an open and transparent manner and has consciously chosen to act with the utmost good faith at all times.

The Club will not be making any further comment at this time.

There is more to our finances than is visible, methinks. Otherwise, as someone has said, "It's been done before."

Let's see what the charges are first.

This is the first statement I've heard from anyone connected to the top echelons of the club since the morning of the Southampton game, and I didn't believe them then either.

ToffeeWeb is a dark place, particularly the Live Forum, I take all the negativity on here with a slight pinch of salt. But I was clearly misguided. The leadership didn't just mess it up, get it wrong, make bad decisions – they've proved themselves to be completely inept, unforgivably so.

There is no good outcome from this. Not unless we are paying a lot for some very, very good lawyers.

The other 3 – and I include once-loved Graeme Sharp in this – couldn't run a greasy spooner. Clowns… but very dangerous clowns with no concept of consequences.

If that is the case, why have we been referred to the Independent Commission? Explain!

Also, it will be many months before this plays out.

Nothing generates unity like a common cause of sanctimonious bleating.

Remember the line "They relegated us!" – ignore our shiteness.

We are run by a group of dishonest amateurs, let's get the lot of them out., I know that is easier said than done but pressure needs to be increased.

What is it they say? "You can fool some of the people some of the time but you cannot fool all of the people all of the time."

Just when we thought we would get away with it.

I guess the ridiculous figure blamed on the pandemic didn't work in the end.

Let's hope lawyers can lock this up for a couple of years until we get a new board.

We won't know the full picture until the accounts are published but I am guessing the loss of the USM etc sponsorship money is part of the explanation.

The way Man City have abused the rules for the last decade, the Premier League may feel an example needs to be set, and a warning given to other clubs that such behaviour is now beyond the pale. Rather than have a massive fight with City, it might just be easier to make an example of Everton, which is fair enough like.

Nottingham Forest signed 31 players, net outlay of about £𧵢-200M plus all the 31 wage contracts.

Summer window:

Nottingham Forest total gross spend: 𧵊.8m. Barcelona (biggest spenders in La Liga): 𧵁.7m. PSG (biggest spenders in Ligue 1): 𧴼.8m. Bayern Munich (biggest spenders in the Bundesliga): 𧴳.8m

January arrivals:

Gustavo Scarpa (free, Palmeiras) Nottingham Forest
Danilo (㾽.8m, Palmeiras) Nottingham Forest
Chris Wood (loan, Newcastle) Nottingham Forest
Felipe (٠.6m, Atletico Madrid) Nottingham Forest
Jonjo Shelvey (٤.1m, Newcastle) Nottingham Forest
Keylor Navas (loan, Paris Saint-Germain)

[Ayew was after the window closed.]

Probably be the same with us I should imagine.

A greater degree of loss was permitted.

Fateful, but the spirit of Evertonians will transcend media-generated negativity and gross neglect and incompetence of the masquerade of a so-called Everton board.

Focusing on the Spurs game, and hopefully this will be an investigation output of NFA, pay investigation fees only, or a transfer ban, or a forced offset, by selling some assets at the close of the season.

Yes, I'm wishful thinking, but staying in the Premier League for next season is paramount to Everton's future.

This makes the Everton Board's position untenable and I think it's unlikely they'll be seen again at Goodison Park – or, God forbid, at Bramley-Moore Dock.

UTFTs!

If we did, that could wipe away the incoming profit.

Last year, the Premier League said we were in the clear... but now we've been found in breach for this past season, when we basically spent no money and were (supposedly) running all our transfers past the Premier League beforehand. How does that make any sense?

I see this as a way of preventing Everton FC being sold to those who fail to purchase Manchester United. It will put off any would-be investors regardless. I doubt it will result in a points deduction, but who knows?

If the Owner and the board have lied about co-operating fully with the Premier League and have broken financial rules, they should be totally ashamed of themselves.

It does explain the silence from the club in the last few months, I had hoped it was because we were being sold, it now looks as if we are marooned.

Meanwhile, let's open up everyone's books, shall we? If they want blood… etc.

But, even a 20-point reduction next season will only mean we will narrowly miss out qualifying for Champions League.
All is good.

We've been through the wringer on Panorama, and the Premier League already conducted a review, said it was fine and now this shite. Not only are we an absolute laughing stock run by a bad actor, but we're a punch bag for the media and Premier League.

If there is one thing that getting rid of Kenwright achieve, I hope it's a Board with a fucking backbone.

Sure, wages are likely to distort a little, but our business investment was made before Covid and who's to say the club wouldn't have grown revenue if that hadn't happened??

We are run badly financially… but there's 14 others in the Premier League doing just the same.

Bollocks to the Premier League… this is that Burnley old boy with a connection.

Premier League five-year net spend table sees Liverpool 𧹈m behind Chelsea

Uefa, Fifa, and the Premier League have made a mockery with their financial rules. Barcelona, Juventus, PSG, Chelsea Man City and other top teams have broken the rules but they have turned a blind eye.

The Premier League needed Everton and the other 13 clubs to support them when the supposed Top 6 tried to walk away for greed, but we know where their loyalty lies.

It's not about the net spend on transfers, it's the amount of losses made over a rolling 3-year period, as we were spending upwards of 95% of income on wages, with I assume the board taking a fair chunk too, and not having USM money in sponsorship or having poor commercial deals in comparison to other clubs in the league, we were always sailing very close to the wind.

Admittedly, I thought this particular cycle, ending in 2021-22 accounts that we'd managed to avoid the rocks, but seemingly that isn't the case.

We need a decent lawyer and a decent accountant.

This is the Premier League hanging us out to dry so they can show the government body being set up to investigate football that they can do it themselves – and we are the sacrificial lamb.

Cunning plan: "Not my fault that we cannot buy any players this summer."

A decent Chairman and competent Board would not go amiss either.

There was an appendix brought out and circulated just on or after the charges brought against Man City, after calls for clarification on likely penalties incurred Marty. I'm just out of office now but when home I'll get the relevant passage linked up

So that would be a hefty fine circa 㾸M? Only issue is does anybody actually know exactly what Everton have been charged with in relation to the financial rules?

Fine?

If that indeed happened (it was not confirmed, to my knowledge), then maybe the red flags were raised?

To end what will now be extensive speculation, @Everton could do themselves a huge favour and publish the 21/22 accounts immediately this evening.

Would be fitting of him to shaft his business partner, the slimeball that he is.

"Last year, rivals Leeds and Burnley wrote to the Premier League asking for Everton's accounts to be independently investigated, although they later dropped their threat of legal action.

The two clubs had been advised Everton complied with profit and sustainability rules after meeting with the Premier League.

In its statement on Friday, the Premier League said the commission would be independent of the league and its clubs, adding proceedings would be "confidential and heard in private"." [my emphasis]

This makes me wonder whether the Premier League are referring this matter so that their own judgement on the issue can also be reviewed & confirmed to be correct & above board, rather than because they actually believe EFC are at fault.

However, whichever way you slice it, the protests against the incompetent Board are further legitimised – as if that were even necessary!

Thanks for your initial input and the following link. It gives some relief in case there is something to answer to.

We fans expect the people currently in charge to be aware of their privileged position as custodians of the reputation and asset that is Everton Football Club.

I hope they will all be able to look at themselves in the mirror.

Not sure of the precise details with Burnley but the impression they have given is it is more of a technicality.

They had a transfer ban imposed in the last few days because they are late filing their accounts; I think they should have been filed at the end of February.

They said it was because they swapped auditor at the back end of last year but they will be filed in the next couple of weeks and that will then remove the ban, so it is a totally ineffective sanction as there is no transfer window open until the end of May.

Contrast this with a man who has been hugely rewarded for his 'stewardship' and the kudos he receives in his position, while treating the lifeblood of the club as serfs and insignificant peasants.

It would be a lot fairer in these legal dramas if the club and its loyal, law-abiding supporters were exonerated of any blame, and the people who made the decisions were the ones in the dock. After all, in any other business institution, the people breaking the law for gain are the ones charged, eg, the Guinness boss years ago.

To see Fathead being carted off to 68 Hornby Road in the back of a police van would be the correct outcome of this debacle.

Once again, I apologise. How any 'Evertonian' can make light of the situation or publish seeming facts about a bad situation for a 'laugh' is beyond contempt.

How can the people who make the rules not know if they have been broken? Is it the fact that the Premier League have known our position all along and now want another body to basically tell them how to run their product?

I am no supporter of this board but I feel the Premier League have led the board and in turn us supporters to believe it was all above board.

Or have the Premier League dragged their heels to avoid any sanctions affecting the league placings, for example, Burnley asking for us to be docked points and reversing their relegation at the end of last season?

It's all a big mess!!

Truth is though we are the worst-managed club in the Premier League and it will take years to get back on our feet.

Very sad times overall for Everton, when years pass it will be remembered as a very dark period for the club.

I totally agree, the whole thing is a huge mess. If I'm correct, I believe the accounts were only formally submitted to the Premier League a few weeks ago, perhaps a month at most. But surely they would have known informally about the approximate numbers contained within that set of accounts for 2021-22?

Perhaps, it is time for the Premier League to have all the accounts for every club to be submitted and signed off in the close season. Then, if there are rules broken, they can act and dispense the correct punishments.

Everton could be in the position of saving their Premier League status in May and getting a points deduction later in the summer which leads to relegation. Probably unlikely, but it will likely hang over the fans and the club for all of the summer.

What we mustn't do as fans, is to give up whilst there are still points to be won. We should use this issue to back the players even more so than we have so far – if that's at all possible.

If we had gathered enough points to absorb any deduction from the Premier League, we wouldn't be worried about relegation… but we haven't because we have shit players. No way round the fact that a vulnerable points total is down to what happens on the pitch.

Admittedly it's galling this lot are the culmination of an apparent wealthy new owner floundering because of a lack of footballing acumen but that's how it works. Venkys, Lerner, Hicks and Gillette, Ashley – the precedents are everywhere.

I keep saying it because it's true but, until we have monstrous amounts of oil money to drive serenely through the mistakes all boards make, we are done. No amount of spreadsheet juggling at boardroom level will change that.

We are like a knock-off footy club. Run by incompetents.
Owned by a dodgy Iranian bookkeeper, with an ugly silent partner, who parades as an accountant, yet can't work out profit & loss.

I mean, would you like to trust your money with them ??

Legal battles will be launched if there are any perceived rule-breaking malpractices, asking for huge sums in compensation. The Premier League itself will come under scrutiny and massive pressure.

In order to avoid any actions against themselves, they can say that their decisions have been sound and independently verified.

This could be part of the reason for today's announcement, to make themselves bulletproof.

Why is it always us? Is there some sort of curse on us? Only Everton, eh?

It all just goes to show what a disgraceful way the club has been run. Every other club had to deal with Covid. Every club works within these rules, however close to the limits; they are they are not in our position. They have people who know how to run a club, how to stay the right side of the rules.

Where would we be if we could not write off a lot of our losses due to Covid? I don't have the inside knowledge of that but it would be interesting to know if we would have still been in this position.

Thankfully we have Mr Kenwright!!

Bear in mind they're suddenly looking at Man City's books from 9 years ago -- financials that in prior years seemingly passed the litmus test. Likewise, we have Juve this year being penalized for crimes of years past, and someone finally cottoned onto Barce's 10-year "other expenses" of being a bribe paid to a ref.

This is possibly as good a reason as any as to why this has happened at this particular juncture, but given earlier misinformation, I don't know if any such select committee is sitting next week.

Kieran @ 89

It would have been a great help and a lot less stressful if we could trust and have full faith in our current owner and board.

I'm fairly sure that Forest did get punished, I'm not too sure about City.

We have been run shockingly for the last 7 years and now we will pay for it. If that means we go down, so be it. But if it gets rid of Moshiri and the board, I'll take it.

Won't you miss watching all the Premier League games at Goodison? Moshiri and Kenwright will eventually go, whichever league we happen to be in. I'd prefer the top flight, but seemingly you don't care too much about it.

Where we are concerned, things move faster than shit through a goose. Expect an example-making punishment given to us in double-quick time.

It always seems that we are up against the World.

Be careful what you wish for??

The stadium will get finished no matter what league we are in. It's gone too far not to finish it.

Where would the Premier League be if clubs like Everton didn't speak up against the Super League. Everton – the club who put their neck on the block to speak out...

The Premier League needs to look a lot closer to home. I just read they signed off the accounts... so how can they back-track? To what end and lengths must a club go to to be deemed in the clear.

What a shame we're devoid of any such talent.

The rewards for some of that work will take time to materialise, but we are confident we have put in place the building blocks for a more stable, robust future. 23 December 2022.

They've no problem with blood money, foreign government slush funds, sports-washing or money laundering as long as it shows a positive balance in club accounts. No credit for Everton severing ties with Usmanov immediately at the onset of the unforeseen Ukraine war.

With a title like that, it should be a very large book, and in terms of book cover size, it is, but there's nothing to read when you open it.

The Tory Party (geddit?) years ago bought enough copies to prevent it becoming remaindered though.

Sigh!

It's just drama, that's all: bread and circuses. We are part of the cast this time. Nothing more.

So, it seems Everton are in a situation where we have to work within a budget agreed with the Premier League. We are not in a situation that results in immediate punishment. That is only likely if we decided to ignore, breach the agreements we will have reached, or our finances were materially different from previously reported to the Premier League.

Looking forward it is clear we will be in a loss-making position again this year, and likely to be above the 𧴡 million profitability and sustainability limit. This will result in continued restrictions on player purchases into this summer.

Whilst the financial position improves beyond 30 June 2022 with the final legacy of the summer of 2017 player purchases and contracts, plus other poor-value signings disappearing off the books, our ability to recruit for (hopefully) a new manager will be dependent on what is agreed with the Premier League and/or player sales.

Profitability and Sustainability Rules

Hope he has hidden the accounts in the same place as the Arteta money…

Have you not seen the New Mestalla in Valencia? Work stopped about 6 years ago at probably the same stage BMD is now.

"We" (not the fans obviously) have mismanaged the club for years and it's come on top big time.

Let's see Bill worm his way out of this one, the slimy fucker has destroyed this club. I reckon we are in a worse state than anyone realises.

This time it's Denise (or she is only the front for Bill the Liar)...

What was the club's effort in keeping the Premier League "frequently" updated on the club's latest financial conditions and the club's ongoing "effort" to try balancing the books?

Now that we have received this piece of shite from the Premier League, does that mean all those aforementioned efforts yielded nothing from them? Let's not even get as far as "sympathy", but it seems the Premier League doesn't even "understand" or "care about" our situation, hence the accusation.

Fingers crossed that this will result in nothing but burning just another hole in Moshiri's wallet.

Bill the Liar is secretly smiling backstage in one of his theatres because the fine won't be coming out of his wallet.

I thought Kenwright was kept on to deal with the authorities and, as stated above, had been successful in doing so.Why am I not surprised this was all bullshit?

Or is it an attempt to put off potential investors? After all, before the game attended by three MSP directors, it was announced that the Board would not be attending because of imminent danger and unspecified security advice.

A statement that the Police felt they had to respond to with a denial.Also after the Chief Executive was held in a headlock, which proved to be blantly untrue.

This present situation stinks to high heaven.

I'll paraphrase that... "We lied through our back teeth!"

I'm more concerned about that clown Moshiri canning Dyche in the summer and bringing in Bielsa or one of Joorabchian's guys…

The Premier League obviously haven't been briefed about the world-class board we have, or how they are a role model for the rest of the league.

I am guessing that they tried to have talks with the board to clarify the accounts, but couldn't locate them.

For the life of me, I don't know why you mention Mike Ashley. Newcastle fans may have hated him but he ran that club well financially and sold it without debt.

No point in getting back at Moshiri and Big Bad Bill. What's happened has happened. We need to look with hope to the future.

Worst thing could be a substantial points deduction this season. That would be too obvious a vindictive course IMO and would end up in a serious court battle that cost bring the Premier League into a position of disrepute.

Best position would be if the so-called "independent" commission finding is that Everton has nothing to answer for.
Somewhere in between is likely and we go back to the old adage: "If money can fix it, it's not that big a problem".

One good thing in all of this might be a change of board structure and a new chairman.

My first wish is that this doesn't get too much in our players' heads such that it reduces our performances.

If it moves them to a more positive "Fuck Them" attitude and we win all 10 of the remaining games, the Premier League would find it hard to seek out a hiding place.

Okay… dreamtime maybe… but stranger things have happened. COYB

In the immediate period before this announcement, there isn't a hint of anything. There would have been a lot of room for manoeuvre over this period. The subsequent "defending our honour" statement by the club has a "thou doth protest too much" ring about it, imo.

The immediate issue is what effect this will have on a potential investor, which Moshiri seems to be convinced is necessary. Prior to this, a takeover that seemed to have Kenwright's hands all over it, and not surprising consisted of men of straw, failed.

A genuine deal which Kenwright could not be a million miles from being involved in has coincided with a precedented Board boycott of Goodison Park and a PR campaign with the intent of turning the fans into savages, which the potential investors risked joining at Goodison.

In the what should be the penultimate parts of potential investor negotiation, a letter arrived at Goodison from the Premier League which, under due diligence would have to have been made available to the potential investor. Who can potentially benefit from this and what effect will it have on the valuation of the club?

Looks like the Premier League have just used Everton to be seen to be doing something about their Profitability and Sustainability rules.

I would be surprised if anything happened.

We haven't been found guilty because the case hasn't been heard yet.

If you where a fellow struggler in the relegation battle this season, you would want any points deduction to be relevant for the immediate season after the offence, l know I would, and would litigate against the Premier League until the punishment was retrospective and relevant to this season.

Even if we stay up, this could go on into the summer.

I agree completely. The Premier League needs to show its muscle in administering the game before the government confirms it'll get involved (and undoubtedly make it even worse).

They'll want to make an example of us. We're an easier target than taking on the murderer and his acolytes who bought Newcastle Utd. The recent golf court case exposed the obvious lies used in that takeover.

I won't hold my breath for the Premier League to act.

The Premier League have already said that they found Everton
to be within the rules but either Leeds or Burnley or both are not satisfied with that.

Maybe the independent commission is being used by the Premier League to prove they have come to the right decision already regarding Everton, but they feel they need to prove it by the use of the independent commission.

Whatever, our Chairman, who is the guardian of the good running of the club we love, being as slimy as a bag of snails, has assured the Premier League that everything has been done "The Everton Way".

In order to achieve this, you need to spend a shedload of cash. The catch is that you are only allowed to spend a shedload of cash if you are already part of the club.

I think you are right on how it will eventually boil down. I am more concerned about how it will impact on a potential investor going forward.

For fuck's sake, it's going to be Everton getting the shit end of the stick again. Big enough to be made an example of; small enough that it doesn't matter...

As with so much in the UK at the moment, when you're led by incompetent, corrupt liars who surround themselves with sycophants, the facts have a way of eventually cutting through the bluster.

This will probably run on into the summer, so I'd expect any punishment to come into force next season.

I'm hoping for a morally dubious decision in our favour.

It's been printed "somewhere" (I'm not sure where) that the American interest has fizzled out. I hope it isn't true because, without new investment coming in and hopefully bringing new life into our club, I fear for it. For whatever reason (or reasons), there has been a catalogue of missed opportunities and poor decisions for well over 20 years.

How long has Kenwright been the Chairman, by the way?
If the club don't "robustly" and with all speed, defend itself and show it has acted within the rules of the Premier League, I think investors (if they come in at all) will wait and see what the outcome will be.

What effect that will have on the speed of completion of the new Everton Stadium at Bramley-Moore Dock, I dread to think.

In any case, it is not some sort of competition: you stand or fall on your own submitted accounts unless you can show you have been treated unfairly. I also wonder if the situation changes if Mr Moshiri takes up the option to buy out all other shareholders and makes Everton a private company.

Unofficially we should be making public inquiries about injunctions against any season starting until we've had time to pursue any penalties through the British courts as I don't think this would be allowed under British business law, that is company financial laws, and especially if our major shareholder was to guarantee covering any financial debts, although I would appreciate the view from somebody more knowledgeable in such matters.

Also, it has been indicated in the past, although I don't know the truth of the matter, that our accounts may include the costs of the new ground, the Women's team and EitC which the rules, I think, make them deductible from the accounts.

Whatever, I think we are nearly all in agreement that this looks like the chickens coming home to roost, now that there is obvious room in the Directors Box.

Unless of course this is to show that Everton have not broken any rules and all complaints have no grounds.

I don't think there'll be any chance at all of there being a "morally dubious decision in our favour," as this is now being decided by an Independent Commission (better give them a couple of capital letters, they might be touchy!)

If Everton have broken the P&S rules, then we will be found guilty and the only hope we have is if there are extenuating circumstances, ie, the Premier League had found us working within the rules.

If that's the case, then I think we will have a good case to say "go and sort it with the Premier League!"

If not, mate, I'd say it's down to what punishment would be administered.

Given some of the transfer decisions that have been made, we will surely get off on the grounds of diminished responsibility.

In my somewhat unclear view, I am wondering if this is more than a P&S investigation, and may be a two-pronged look at the club with regard to Russian connections. It seems odd that, having been given the green light already by the Premier League, resources should be getting committed to a further investigation.

Without knowing the mechanics of the sponsorship deal with Finch Farm and naming rights for the new Everton Stadium at Bramley-Moore Dock, I have to assume that our financials have taken a hit since February of last year, ie, midway into the 2021-22 season, the season under the microscope.

If the Finch Farm sponsorship is an ongoing thing, then that obviously has evaporated but it may be that the sponsorship deal was a one-off payment lasting 5 years (or whatever). The naming rights option as I understand it was simply an upfront payment.

Whichever way it is structured, surely we have been shafted to some extent. There may even be other Russian-connected income streams that are hidden away which we are unaware of, which having dried up or being viewed as spurious, leave us precarious.

I feel a bit of an ill wind blowing over this and pray like all of us for a swift and positive resolution but I am feeling more than a little concerned just now.

Having said that, if you are in a club and those are the rules, however stupid, you have to abide by the rules. Now we know Moshiri is absolutely clueless when it comes to football matters, but he is an accountant that looks after the finances of multi-million pound businesses. So you would expect between him and Ingles, our financial director, that they would have made sure we stayed within the rules.

Having said all of that, according to reports, the club have been working closely with the Premier League to avoid any possibility of transgressing the rules… so, if that's true, what has happened to change that?

There has been a flexing of the muscles of late were a few Championship clubs have been given a transfer embargo, Burnley being amongst them. Maybe we were an easy target for the Premier League but, as many have said, let's wait to see if we have actually broken any rules.

How can Nottm Forest spend 𧶀M in one season? I mean, I'm not an expert in their finance, but they are not raking in massive sponsorship or playing Champions League? 𧴡M loss in one season is peanuts in today's football.

Let's just hope the Premier League have their ducks in line and have not led us up a path that sees an outside body tell them they have broken their own rules and we pay the penalty.

Where have I heard this before? Sounds familiar, doesn't it? Everton paying the price for others' mistakes and suffering for years??

If we are guilty then we deserve punishing.

I'm with you regarding the conspiracy nonsense. We are in this mess because of our incompetent owner and board, sacking manager after manager, and the ridiculous wages we've paid to average players with no sell-on value.

Why would the Premier League have it in for us? Why would they want one of the most historic clubs in England and founder members relegated? It makes no sense.

We are in this mess because we've been run by idiots who have run us into the ground.

Also, let's not forget the only reason most of the English clubs pulled out was because the fans of those clubs objected to the format, although not the idea. So, had it included some meritocracy in the new format, these clubs and most of their fans would have been happy to join.

But I didn't hear any journalist complain when Derby got a 21-point penalty and doubt if they will use the argument about the innocent Everton fans, who have been campaigning about their incompetent board for months, if we are threatened with a points deduction.

What I'm not sure about is whether either Manchester City or Everton have a right to appeal any decisions made by the independent panel – I'm sure in City's case it was reported that no appeals could be made.

What seems certain is that this will be a long drawn out affair and it will fully test the Premier League's ability to enforce what some would call arbitrary punishments for breaking arbitrary rules – even though all member clubs signed up to the rules. In both cases, the Premier League didn't forewarn the clubs that they were going to be put before the panel, although that's likely to be normal practice.

We'll all have to wait and see what happens in the coming months and hope that the punishment handed out doesn't adversely affect the club too much. Some would argue that the mere fact it has been referred to the independent panel has done quite a bit of damage already.

We were either within the guidelines or we weren't.

If, in the worst-case scenario, we broke the rules and suffer a points deduction, then that will be the final nail in the coffin for our Board of Directors (disasters).

Oh, wait…

It's not self-pity. Surely the Premier League should be able to tell us if the rules have been broken?

Surely, if the club have been in "dialogue" with them all long since Covid, then they know the circumstances?

Why is an outside body needed to decide? Don't they make their own rules?

Doesn't matter which iceberg we have hit, the Board's incompetence has a good chance of crippling us for another season.

A few irksome points though, exactly what is the issue about? Wages? Overall lack of profit, is it a major or minor issue?
We are assuming guilt before we hear the charges, so let's wait to see what the result is, then we can debate the actions of the board.

If Bill and his band of refuseniks cannot do their job, their clear responsibility must be to resign.

Only Everton!

I think the football club and the stadium and other property interests are run separately. So the new stadium will continue unhindered.

The club needs the input of cash to progress forward, linked with a change in its management capability. It is this that the referral will affect, imo.

Not self-pity, Paul H, just more confirmation of how poorly Everton Football Club have been run for a very, very, very long time. I do agree that, if we are guilty, we should be punished accordingly.

If this happens, there's no point in shouting from the rooftops, and the fact that this thread has so many different views of why the club is getting investigated is the one real consistency of the whole Bill Kenwright era, imo.

Nothing has been transparent under this man's tenure, and this has surely got to be our biggest concern right now.

I think it's to do with Russian money.

Is there any P&L mitigation for finances lost through other means, ie, injuries decimating player valuations? Gbamin's injuries have cost us, Mina's injuries made him unsellable and unplayed. Tosun was about to be sold to Crystal Palace and got an ACL injury, Gomes never properly recovered from the leg-breaking Son tackle. There's others.

It's almost like the luck of the draw, another club could have fantastic luck with injuries and be easier to be P&S compliant as a result.

Sigurdsson's situation is hardly the fault of Everton FC, any sale fee was not realised, his wages remained on the books. Is it fair and reasonable to punish a club for things that are not their fault?

I'd like Paul the Esk to give us some insight, if he can, it seems like a minefield.

The Esk has just published some thoughts about the situation.

Potential Consequences

Maybe I'm being simplistic or even naive, but the supporters of all affected clubs in these finance rules always cop for it.

If not, I wouldn't be surprised if this was more lies by those trying to run our club. Wouldn't be the first time!

We can have different opinions whether we are still a 'big' club or not. One thing nobody can argue about is that the supporters are amongst the best, not only in the UK, but in the World.

Since the arrival of Kenwright, we have slowly been reduced to the shambles we are presently in.

Yes, Moshiri has to accept some blame but the day-to-day running of the Club has been Kenwright and Barrett-Baendale – what a pair! These arseholes have brought us to be a shambles and an embarrassment.

Worst-case scenario is relegation – but then it always has been, though doomsday is the club going into administration as a result.

The probability of us spending some time in the lower divisions has definitely increased though, that's for sure.

Even if we escape this season, and even if we aren't docked points, it seems unlikely that we'll be bringing many new players in during the summer and, if anything, we'll be offloading our best assets.

At this stage, I'm assuming we'll be starting life in Bramley-Moore Dock in the Championship. Not the end of the world, as we could certainly do with a reset, but massive points deductions after relegation and/or adminstration, in conjuction with the costs of finishing the new stadium could be an existential threat.

On the other hand, it might all come to nothing and we'll be Top 8 next season.

The club was likely already running on empty and flirting close to the limit of the P&S rules. This loss of sponsorship event has probably tipped the balance and forced us closer, maybe into transgression territory.

I found the Esk's piece (see link @166) worth reading.

As we scratch our heads, this is the Esk bit I would highlight:

So what has changed?

The aggregate position for the period 2021-22 worsened from the previous year by virtue of 2021-22 losses being greater than 2017-18 which dropped out of the equation.

The bigger question is why the Premier League are alleging a breach of profitability and sustainability rules for 2021-22 having approved previous losses likely to be greater than the permitted amount?

It is known that the board were in regular contact with the Premier League. It is known that the measures agreed with Everton included those measures in Rule E.15 which effectively required sign-off of any new player recruitment or the issuing of a major new player contract.

Perhaps this alleged breach is a further signal from the Premier League of its abilities to self-regulate, another attempt to push back against the independent regulator coming down the tracks

And many good points have been made by posters on this thread. There does seem to be some general agreement this will drag on for months. But I'm not so sure about that.

I get the impression the Premier League has all the "evidence" already. And it may well be a lot less complicated than the Man City one.

So, I wouldn't rule out a "ruling" in, say, a month from now. I am not predicting that will happen, but I wouldn't be too surprised.

We've only got ourselves to blame for the mess we find ourselves in, but it does feel a little like making an example of us is less damaging to the Premier League and its paymasters – we shall see.

Sanctions were imposed by the UK government on Usmanov on 3 March 2022, surely the accounts for that period wouldn't have been able to include or exclude any monies affected by those sanctions?

The day before (2 March) following sanctions imposed by the EU, Everton announced that it was suspending ties with companies connected to Usmanov. Of course, Everton Football Club could have pleaded mitigating circumstances, however, would this have been accepted by the Premier League?

Perhaps, it was allowed at the time, but maybe there has been a change of heart or more likely there has been pressure put on by other parties to clarify the position? Like everybody else, I'm merely guessing about the true scenario.

Usmanov Sanctioned

Everton suspend ties

Now that the reverse appears to be the case, they have pulled the trigger.

Did they see something going on that they did not want to be associated with?

Did this issue then surface and cause our case to be re-examined?

I don't think that the auditors did quit – well not as far as I know.

Everton's next annual report is due to be published by the end of March 2023, according to Companies House. Should BDO walk out on the club, as reports from The Guardian suggest it is preparing to, it would leave the Toffees with just five months to find a new auditor to sign off on the accounts. However, the club remains adamant that BDO will be in place to complete the task.

BDO is re-evaluating a number of its UK audit contracts. In August, reports emerged that BDO was set to quit its role as auditor of Quintessentially. The ‘luxury lifestyle management' firm was yet to file its financial statements from 2020, which were due more than a year ago. BDO had also won that contract from a Big Four firm in 2020 – this time, PwC. A year after the switch, the client admitted to making ٥ million in errors on its accounts, and paying out ٟ.4 million in unlawful dividends in 2021.

Earlier in the year, the Financial Reporting Council (FRC) found that 42% of BDO's audits in the last year needed improvements. This was something audit market reform advocates alleged was the result of the firm picking up the ‘more challenging' audits dropped by the Big Four. As such, the cases of Quintessentially and Everton may not be the last cases of BDO apparently re-thinking the roles it recently assumed from the Big Four.

BDO eyes Everton exit?

I just hope he keeps his bloated mush far away from any Everton games. What a pitiful state of affairs this club is in, and he's left us in.

Perhaps that infamous bed-sit guy would have proved a better option than Moshiri?

What a mess. Our only mitigation would be that we were supposedly transparent in our dealings with the Premier League, even to the point of clearing transfer business. Or at least that is what our board seems to be claiming, so let's hope that's not another porky...

I take your point about the club and stadium being separately run. What I was trying to clarify regarding the stadium, that the said investment coming in may well have used some of their money to fund the increase in costs (is it now approx 𧾦 million?)

If f we go down because of this, would that affect the thinking of any possible investors? Meaning, if we stay up because of our efforts but points deducted sink us, would it affect a potential investor's thoughts about investing?

I still think that the Premier League had previously (and may still have) seen EFC as not guilty of breaking any rule. My thoughts still are that Leeds and Burnley have pushed for this Independent Commission ruling.

The club must have known 17-18 was dropping off the equation. You basically have 3 years to plan for it, but it's come to this.

Surely all this has to be the end of Moshiri, Kenwright & Barrett-Baxendale. How can they have the front to say everything is going well??

Wish we had been sanctioned like Chelsea were, and forced Moshiri into selling to someone with a fucking calculator!!

I see where you are coming from. Paul the Esk talked of a loan with a warrant to take a shareholding as security. I think your idea is right, but I see the investment in the club as a way to free up finance for the new stadium in that the club needs money and the investment provides that, and is not drawing away money for the financing of the stadium.

I have not read Paul the Esk's recent article, the reference is from his previous article.

As a fervent Evertonn supporter, it's both disheartening and maddening to witness the individuals entrusted with managing this once-glorious institution drive us into the ground.

We've endured back-to-back relegation battles, underwhelming commercial results, hostilities towards our own fans, and now face accusations of breaching Profitability and Sustainability rules. Whether these allegations are true or not, the fact that our financially robust club is in this predicament is nothing short of disgraceful.

For years, we've squandered money like a spoiled child recklessly wielding their father's credit card, with no regard for the consequences. The mismanagement is glaringly apparent. Either we've violated the rules, or we've spent so poorly that we've been forced to refrain from financially competing for transfers due to the risk of breaching regulations.

Mr Moshiri cannot escape blame. He has permitted these inept individuals to retain their positions, nurturing a culture of mediocrity within the club. Moshiri must also scrutinize his own role and ask, "Am I the right person to lead this club?" If the answer is No, then I implore Mr Moshiri to bring in a competent, ambitious leader… or sell the club.

As is often the case, the innocent staff and devoted fans are the ones who truly suffer. They face potential job losses due to financial sanctions or relegation, and rather than relishing their weekends of football, they must grapple with this unnecessary drama.

I've always maintained that, if we were a well-managed club and faced relegation on sporting merit alone, then as painful as it would be, we could accept that as the nature of competitive sports. However, when we're staring down relegation and are unable to secure a much-needed striker to strengthen our faltering attack due to years of mismanagement, that's when genuine anger surfaces.

Regardless of the outcome, there should be no doubt that those tasked with running Everton Football Club are woefully unfit for the positions and responsibilities they hold. They should either resign immediately or be ousted by the owner, for the sake of our beloved club and its future.

Nil Satis Nisi Optimum 

Manchester City charged with breaking financial rules by Premier League

Drag it out as long as you can…

My view is that the quicker the better! It will provide the independent commission with proof that the club is doing everything possible to show it's setting about the vital task of putting right whatever "weaknesses" we have at Board level immediately.

Zack, I like what you've said, mate! I only hope more Evertonians wake up to what has been done over decades to our dear old club.

Our forefathers must be weeping tears of sorrow to see us being put through this prolonged agony by that wilful buffoon and his crew!

The biggest questions for a long time are: (a) Why did Moshiri keep Kenwright on? And (b) Why does he still persist with our current board?

I'm sure I've read that Everton come in around 14th for net spend over the last five seasons, so does this make it obvious that a lot of our losses have been on wages?

If it doesn't impact the ground, then that's one of the most important things imo right now, so hopefully any sanctions will surely take this on board?

People keep saying Moshiri won't sell until the new ground is built, so hopefully he's got the collateral to keep building. I take a different view and believe he can't wait to get away from both Everton and Bill Kenwright… but only time will tell us this.

What angers me is that surely a large part of the reason we are in financial trouble of this nature is because the Usmanov funding had to be pulled and all connections with him severed.

Now, when Moshiri took over and Usmanov became involved with the training ground sponsorship etc, he was just another of the distasteful oligarchs involved in football, much like the ones owning or running Man City, PSG and now Newcastle Utd. He may not have been a great human, and the source of his money was always dubious at best, but nobody, least of all the Premier League, was saying he couldn't be there!

I don't see why Everton should now suffer if we made business and funding plans that were at least partly predicated on other deals similar to the training ground one. Those plans would have been made in good faith and before anybody could have predicted Russia's invasion and the sanctions which followed.

The allegations relate to 2021-22, and Russia invaded Ukraine in February 2022. Shortly thereafter, Everton were forced to break all connections with Usmanov, which may well have included funding due to come in from the training ground deal and who knows what else...

Suppose the Emirate of Abu Dhabi committed some heinous crime worthy of sanctions? Man City would, out of nowhere, have all their funding pulled and suddenly be in breach of the rules...

Isn't this just the same thing? Of course, we all know about the stupid, over-valued signings, but shouldn't the club be making more of a point of the sudden, unplanned loss, for which we are not to blame at all, of a rather large funding source in Usmanov?!

Everton have been a shining light for years, in profit and played by the rules. Everton need to put the gloves on and fight, make it messy and drawn out. Hopefully, Mr Kenwright has a few aces up his sleeve.

Points deduction... no. Fine… yes! History tells us this will happen or see you in court with other clubs being pulled in.

Even when we don't play, we make headlines.

While the rules may state that a fine may be applied you'd have to wonder if that wouldn't just be adding to what got us in this position. A ban on incoming transfers, which may ultimately have the same effect as a points deduction, would seem more logical but any sort of punishment would seem to have a financial effect.

I suppose somebody has asked, as many seem to consider, if it is a fair and even system, and not just in the limited parameters of the Premier League. Some say that it is within the rules that, presumably, were/are agreed by all participating clubs but they must still be seen to be reasonable and fall within the laws of the land.

I suppose there is an argument that an entity should be allowed the opportunity to trade out of its predicament.

If they have passed this to an Independent Commission, then I suspect they know it's not good news for us and don't want to appear to be the judge, jury and more importantly, the executioner

As Paul @ 200 says, let's hope the sanction is not a points deduction. A transfer embargo would equally cripple us but would seem to be the right punishment that best fits the crime, ie, getting players beyond our means. Moshiri has thrown good money after bad and, for a supposed accountant, that's surely suicide.

I don't like the idea of letting this drag on and on. I'd like it sorted before the season is out and, whatever happens, let it happen, provided it is just. If we are found to be in the clear, then great… but, if we are to be punished, then bring it on and let's draw a line, provided of course that this means the final death-knell for William Kenwright Esquire.

The Top 6 are clearly worried about Newcastle and they are doing all they can to stop any more clubs joining the elite.

I wonder if our wish for accountability has made the Premier League realise that we really are being run by charlatans and we are a basket-case of a club.

I think that, because we were one of the Big Five who instigated the Premier League, the smaller clubs (who all resent the big boys) can now have a go back at one of the former big boys.

We are a convenient target.

His latest disappearing act is something that most phonies do when they inevitably get found out, so let's just hope the authorities notice that the Evertonians have been protesting against the inept board and the way the club has been getting run, for quite a while now

Paul (203) Now that's a good post and funny as well.

They being aware that, whilst we have been foolish, we have complied with the rules. This independent commission says that and the suits in charge of the Premier League can then go, "Told you so, we do know what we are doing."

So either:

1) They've changed their stance and interpretation from what they've been telling us to do.

Or

2) We've somehow ignored what they've told us to do and incredibly, still managed to transgress the rules.

Are the Premier League that duplicitous or are they covering their backs in the face of any future, huge legal and multimillion compensation challenges?

Or

Is our board capable of being spellbindingly financially incompetent. Then making things a thousand times worse due to even more financial incompetence in not following to the letter the restrictions the Premier League have made.

If it's the former, we may, at best, escape penalties as they may find, and rubber stamp, that the Premier League has acted reasonably. If it's the latter, they will throw the book at us.

I don't have a problem with the attempts to regulate clubs' spending to protect them from idiot or uncaring owners, just how fair and effective those regulations can be when there was no attempt to retrospectively rein in the truly massive overspenders who now have their advantages perpetuated.

Any community-embedded sporting enterprise is not equivalent to John Lewis. Their worth goes well beyond what customers can simply purchase, and they can't diversify to meet modern trends, like a retailer.

“Now we know Moshiri is absolutely clueless when it comes to football matters, but he is an accountant that looks after the finances of multi-million pound businesses. So you would expect between him and Ingles, our financial director, that they would have made sure we stayed within the rules.”

All I can say is that it is my experience of business and businessmen that leads me to expect many of them of being no more truly aware of the recipe for success than Joe Bloggs, and that the majority of them believe ‘rules' are for other people.

I agree with a lot of what you say, but have a different opinion regarding Moshiri. Moshiri's mistake was buying Everton under whatever terms he agreed.

Why did he buy the Club?

Getting in at a discount price because those that had the power to sell wouldn't sell to someone who fitted their terms.

He was bluffed that Everton were well-managed and only needed an injection of cash. (The 'Everton are rich' makeshift flag comes to mind.)

He was attracted by the potential of real estate developments.

He foresaw problems with the authorities having Russian connections and the offshore financial source of his wealth.

He knew that the rules would have to be pushed. Maybe he was given the impression that the rules could be pushed if inside connections existed.

Maybe it suited with his other business responsibilities to invest in a venture that did not appear to need his direct involvement.

He had backup and was encouraged to buy. It is not every day that someone conveniently buys you out so you can avail of an opportunity elsewhere.

If he had not bought Everton, what would have happened?
Someone else would have, but would Kenwright, who had the power to agree to, sell?

Martinez would have stayed. If he didn't, we would have got Koeman.

Everton would have continued to decline, as those in power would have kept their wages at the expense of club progress.

No new Everton Stadium would have been built. Probably we would have been involved in some Council scandal.

Kenwright would have bluffed us for longer and made a virtue out of our Championship status and would have been gone before are Football League status emerged.

Barret-Baxendale would have still been our Chief Executive Officer. No comment.

Everton would have not been a Top 6 Club.

So Moshiri got bluffed to some extent. He did try to get directly involved by introduction of his money to start with and, when his money went South, by appointing Brands to the Board (to increase football expertise and control football wages and exoenditure) and then directly himself through management appointment. But against this were the constant influence and actions of Kenwright & Co.

He never got to grips with the commercial side and seemed to get bluffed by Barrett-Baxendale's unique management-speak bases in appointments and titles, but never accountability or performance.

There also appeared to be a lack of awareness regarding Profitability and Sustainability Rules – or at least unfounded optimism that Everton would manage its problems continuing as before. The Saha Summer was ludicrous in hindsight.

Anything after that was manager after manager, deadwood, youth development loans, and the same regime in place no matter what the results or performance, bankrolled by Moshiri, though he was beginning to kick.

Now we find that the Board is surprised and indignant that the Premier League has referred Everton to an independent Commission, having just received the 2021-22 accounts. Moshiri has been silent.

So, isn't it quite feasible that the other clubs involved (Burnley and Leeds?) have told the Premier League they are not satisfied with their findings? The result of this may be that the Premier League, confident of their own review, have referred it to appease those clubs and bring matters to a close.

I appreciate the above is an optimistic view but very plausible, imo.

Knowing that idiot Kenwright, though, he would probably accept relegation as punishment to show how amazing he was.

I think that both Man City and Everton are in exactly the same position, that the referral equates to 'being charged'.

Although not welcome, how can he not attend a home game when he has a guaranteed seat when many can't get a ticket? Yet he goes to Anfield.

I'm going into match mode. I don't care if he is there or not. I don't even notice and I don't want him there.

All I will care about on Monday evening it the players that take to the pitch and the bench behind them.

The Premier League have told clubs they are hopeful of completing their disciplinary case against Everton this season putting the club at risk of a points deduction as they battle relegation.

Sportsmail has learned that six clubs wrote to the Premier League demanding answers after Everton were charged with breaching spending rules last Friday, with top-flight executives providing an informal response on Friday.

As reported by Sportsmail last weekend Everton's rivals had expressed unhappiness at the timing of the charges after being given categoric assurances by the Premier League last summer that Everton had no case to answer despite recording combined losses of £371million over a three-year period, more than three times the permissible limit of £105m.

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EFC 2022 Report and Accounts

The accounts show the Club recorded a turnover of 𧵭m and a reported statutory loss of 㿘.7m, representing a 㿸m (63 per cent) reduction on the loss of 𧴱.3m for 2020/21, despite the impact of a significant fall in broadcast income.

Crazy when Man Utd are in for over a billion!