‘The floodgates will open’ – Premier League braced for legal chaos if Everton and Nottingham Forest financial charges upheld, expert warns
The Premier League has been warned that the “floodgates will open” if financial charges against the likes of Everton and Nottingham Forest are upheld.
Toffees already hit with 10-point deduction
Charges levelled against Forest
Man City have a case to answer at some stage
In an era of Financial Fair Play (FFP) and Profit and Sustainability Rules (PSR), teams in the English top-flight are falling ever further under the microscope. Everton have already been stung by one 10-point deduction this season, while further charges have been levelled against them and fellow strugglers Forest.
Manchester City have 115 charges hanging over their head, with there a case to be answered there, while there have been suggestions that Chelsea could be in trouble at some stage after spending over £1 billion ($1.26bn) across four transfer windows.
Everton are appealing against their penalty, with more legal action in the pipeline as other clubs fight their corner, and Simon Leaf – a sports lawyer at Mishcon de Reya LLP – has told i news of potential issues in a complicated process: “Going forwards, it seems certain that if charges against breaching clubs are upheld, the floodgates will open and there will be a deluge of related legal claims, as rival clubs that consider that they have suffered losses come out of the woodwork. Such losses could include anything from lost revenue from commercial partners, prize money from the league and even lost titles.”
Divides are forming inside the Premier League pack, and among those that feel aggrieved at losing their top-flight status while others broke the rules, and Leaf added on the challenges that are now being faced: “[These cases] are less frequently seen in the Premier League, which has, until now, managed to maintain harmony between its member clubs. Retaining the peace going forwards will be a challenge for the Premier League. They have a near impossible job on their hands to keep everyone happy in the face of the myriad of legal claims that could result. Such disharmony could cause wider damage to the Premier League’s brand and ultimately its ability to retain and attract commercial partners. So this really is a crucial period in the future of football and even more so with the spectre of an independent regulator looming large.”
FFP regulations stipulate that club’s can only lose £105m ($134m) across a three-year rolling time frame, per the Premier League’s PSR rules, with big spending in the transfer market meaning that many clubs are leaving themselves open to investigations.
