How Leeds United’s relegation rivals Everton could be punished if Premier League allegation is proven

Leeds United’s Premier League relegation rivals Everton have been referred to an independent commission by the Premier League over an alleged breach of the league’s profitability and sustainability rules.

The Premier League’s profit and sustainability rules state that clubs are only allowed to lose a maximum of £105m over three years. Everton reported combined losses of £371.8 million over a three-year period ending in 2021/22.

Everton ‘strongly contest’ the allegations of financial breaches and are ‘prepared to robustly defend its position to the commission.’

What punishments doe Everton face?

If found guilty, a range of sanctions could be issued to Everton. The possible punishments include a potential points deduction, transfer embargo, reduced playing squads, fines or being given a strict budget that they must adhere to.

In the most severe cases there is the possibilty to be expelled from the league.

Everton are not the only Premier League club facing charges from the league, after Manchester City were charged with over 100 breaches of financial fair play rules around 100 times over a nine-year period last month.

What is the difference between profit and sustainbility and financial fair play rules?

Profitability and sustainability rules are the regulations that prevent clubs from making excessive losses over a three-year period.

Meanwhile, the basic premise of FFP - which was first established by UEFA and later adopted by the Premier League - is to ensure clubs do not spend more in the transfer market than what they make in revenue.