Everton and Nottingham Forest 'breach FFP rules' and could face points deduction

Nottingham Forest could become the third Premier League club to be found to have breached rules around financial sustainability while Everton could be hit for a second time this season

Everton and Nottingham Forest will be informed they have allegedly breached Premier League profitability and sustainability regulations (PSR) and could face a points deduction, a report has claimed.

Both clubs will reportedly be referred to an independent commission over their alleged breaches and will be formally notified of any charges on Monday January 15, according to The Athletic. Punishments for such breaches can include a fine or a points deduction if clubs are found guilty of any charges.

Premier League clubs are permitted to lose a maximum of £105million over a three-year period (£35m a season). Everton have already been docked 10 points this season over a separate breach relating to the 2021-22 season.

Forest have not previously fallen foul of the regulations while the only other club to have faced charges from the Premier League are Manchester City, who are still arguing their case. The Athletic claim both Everton and Forest are preparing to fight their own corners. Mirror Football has contacted both clubs for comment.

Asked following their 0-0 draw with Aston Villa on Sunday about the prospect of facing further punishment, Everton boss Sean Dyche said: “We are just waiting on the news. The last time the news came out of the blue as you know, it might do again, we have to wait and see.

"You don’t know until you know. I’ll explain further if and when the news comes through.”

Everton's 10-point deduction saw the Merseyside club slip into the relegation zone before climbing back out again after an upturn in form. The Toffees are currently teetering above the drop zone in 17th place, just a point ahead of Luton Town who have a game in hand.

Forest are only three points ahead of Everton though also have an extra game to play. Forest are allowed to lose a smaller amount than Everton over the three-year period as they were in the Championship prior to their promotion to the Premier League.

The club's owners have spent heavily since their return to the top flight, forking out more than £250million on new players over several transfer windows. The Athletic claim Forest may put forward Brennan Johnson's £47.5m sale to Tottenham, which occurred after the cut-off date, as evidence of them attempting to balance the books.

Everton have also spent huge amounts, largely on their new stadium at Bramley-Moore Dock, with costs estimated to have spiralled above £700m, while Farhad Moshiri has been openly seeking investment to alleviate the financial strain on the club.

December 31 was the deadline for clubs to submit their accounts to the Premier League. Both clubs would have the right to appeal any charges should they be brought, with the Athletic suggesting this date will be May 24 - five days after the season concludes.

Everton have already lodged an appeal against their previous charge, which was handed to them back in February.