Finance expert reveals how many points Everton and Nottingham Forest can expect to be deducted

Everton and Nottingham Forest can expect a deduction of up to three points each, according to finance expert Stefan Borson.

Borson, who was previously Manchester City's financial advisor, appeared on White And Jordan to discuss the profitability and sustainability breaches both clubs incurred, casting doubt on their Premier League survival hopes.

Everton is celebrating your 10-point deduction is reduced to sixmeaning they are now five points clear of the relegation zone with 12 games remaining.

However, they are awaiting the results of their appeal over a second offense for 2021/22, which could mean another deduction before the end of the current campaign.

Premier League regulations state that no team over a three-year period can lose more than £105m, whereas if a team were in the EFL it is less than that.

Forest They were promoted from the Championship in 2022, meaning they have less room for maneuver than their competitors.

But in that time, they have spent almost £250 million on 45 players and recovered just £5m in player sales during the period they were found guilty, even though they sold Brennan Johnson to Tottenham for £45m in the summer of 2023 to add more balance to its books.

Both parties may have to wait until End of the Premier League season to know its fate.with Borson assessing what punishments they might receive.

Talking to Jim White and Simon Jordan about EvertonRegarding the situation, Borson said: “This double jeopardy thing is wrong.

This has to do with natural justice in taking a three year period where you have already been punished for two and the second independent commission will have no problem understanding what is fair in that context and understanding that you should not be punished twice for the same period.

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“That being said, they will clearly see another violation as a serious matter because the things that are seen in the PSR evaluation is the trend and clearly the trend has gone against them in the violation because if the trend had continued to improve, they would not have been in violation.

“Everton have made quite big losses for 2022/23 (they haven't published their accounts yet but are due to do so at the end of March) but we know they were approved in November or December and like many clubs.” They have clung to them.

“We don't know what Everton's number is, but we know that the 22/23 defeat was very big and therefore they will suffer a serious punishment.

“I think you can work on the basis that the starting point will be another six and then you will deduct the two years in which they already had a sanction and that will take you to two or maybe three, or maybe one (points deducted).

“I still think they will get an additional point deduction, it's just that it will be evaluated in the overall context, it's just that most of their arguments are unlikely to succeed because they have already been presented, so I think it's a relatively decision.” simple for the independent commission on Everton.

“It is a similar type of equation for Nottingham Forest. I would be a little worried if I was a Forest fan because of the aggravating factors because it seems like they spent recklessly and that is something that will put them higher on the punishment scale.

“However, what puts them further down the ladder is that they only breached one year of Premier League financial fair play, so when a team is promoted you have an EFL subsidy for two of the years and a subsidy of the Premier League by one”. of the years, so in essence the target was £61 million and in the two years in the EFL they were there or thereabouts, so they may well get away with it in the first two years of the period, in partly because they did not surpass it by much and partly because the Premier League will not know how to deal with it because it is not within its competence.

“I think Forest is probably looking at something like two or three points, plus the potential for some aggravating factor around reckless spending, minus the potential for what the appeals commission describes as the golden mitigation that Sheffield Wednesday that they had when they sold their stadium, which Nottingham Forest hints will be Brennan Johnson.

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“I think it is very unlikely that the paperwork surrounding Johnson matches the tone of his appeal, so I suspect that they will not get mitigation for Johnson and therefore it will be the aggravating factor of how great the recklessness is and how these two drive. one-year heel period when they were in the EFL.”

Club hearings are expected to take place in early March and a decision will be made in April.

If appeals are then filed against the decisions, the situation could last until after the season ends.