6 + 2 Point Deductions

[Gerryor]

Can a financial nerd please explain the audited part, what are the PL disputing? Are they saying ourselves and independent auditors have collaborated?

Auditors don't collaborate with companies. They have a duty of care and a legal responsibility to say whether the accounts show a true and fair view. They could be sued or lose their licence if they get that wrong. They said the '23 accounts show a true and fair view.

The club maintain that interest incurred on building the stadium should be capitalised until the stadium is producing an income. The FA seem to be arguing because one of the loan agreements said the loan was for working capital it should be allocated to the accounts.

Obviously interest charges have increased dramatically in '23 and surely the only reason for this is because the club is building a new stadium! Hope that explains it

 

[Martin Alvito]

The Premier League is making boxing sanctioning bodies look clean by comparison.

 

[ForeverEverton]

 

[robbiehanley]

Auditors don't collaborate with companies. They have a duty of care and a legal responsibility to say whether the accounts show a true and fair view. They could be sued or lose their licence if they get that wrong. They said the '23 accounts show a true and fair view.

The club maintain that interest incurred on building the stadium should be capitalised until the stadium is producing an income. The FA seem to be arguing because one of the loan agreements said the loan was for working capital it should be allocated to the accounts.

Obviously interest charges have increased dramatically in '23 and surely the only reason for this is because the club is building a new stadium! Hope that explains it

Surely a decent accountant / financier repurposes the RCF into two tranches - one for working cap and one for stadium costs. What do I know though.

 

[Hinchcliffe's Corner]

Everton could and should have sold more players? The PL argued that to be sustainable that we could and should have sold more players, HELLO we stayed up on the last day if we sold more players we'd 100% have gotten relegated, their arguments are mental.
View attachment 251959

Who tf wants to buy our players??? What kind of statement is that.

 

[ToffeeTim]

Agree with this analysis

I was absolutely baffled to see that they were challenging capitalised interest treatment in the financial statements, which are audited.

I just don't get it at all. It's bordering on ludicrous.

 

[bebo86]

My head is lost with all of this, are we going to get another points deduction this season aswell?

 

[ToffeeTim]

Can a financial nerd please explain the audited part, what are the PL disputing? Are they saying ourselves and independent auditors have collaborated?

Our accounts contain interest which is capitalised. That means it goes to the balance sheet and not the profit and loss. Which means it doesn't go towards PSR losses.

Broadly speaking, capitalised interest is interest on borrowings used for a capital project such as construction.

Our accounts are audited so the league would have to argue the accounting treatment is incorrect.

 

[ForeverEverton]

I wish this was the end of it, looks likely we get more points deducted in the summer for next season...

Literally nothing anyone can do, the PL is sending this club down, no ifs and no buts, clear as day the objective. No one can save us, we`re done... fully expect to start next season -4 or -6 aswell.

 

[ForeverEverton]

Our accounts contain interest which is capitalised. That means it goes to the balance sheet and not the profit and loss. Which means it doesn't go towards PSR losses.

Broadly capitalised interest is interest on borrowings used for a capital project such as construction.

Our accounts are audited so the league would have to argue the accounting treatment is incorrect.

The IC has done exactly that.... we go to another IC regarding years 21, 22 & 23 which will lead to more points coming off. So that will be 8 plus a raft more potentially another 6-8 next season if this goes the PL`s way.

 

[Tipp blue]

Not even a chance of having it looked into. Very little mention of it.

 

[Liam-EFC]

My head is lost with all of this, are we going to get another points deduction this season aswell?

No

 

[Tommy Chong]

Everton could start next season on minus points if guilty of third FFP breach

Everton have been deducted two points for a second breach of financial rules but they could face more trouble in the months ahead

inews.co.uk

Surely they wouldn't have the audacity... Not a third time?!

Surely a decent accountant / financier repurposes the RCF into two tranches - one for working cap and one for stadium costs. What do I know though.

Mate, we're suppose to be discussing footballing tactics and our best starting XI etc...

Not becoming pseudo-accountants/lawyers trying to discern this mess that we're in.

The PL has ruined football for us.

 

[ForeverEverton]

2 more ICs to go, potentially 3 before the start of next season... just no end to it, literally no point at all.

What players are going want to come to Everton all the while the PL keeps loading sanctions on the club.

 

[ForeverEverton]

Surely that wouldn't have the audacity... Not a third time?!


Mate, we're suppose to be discussing footballing tactics and our best starting XI etc...

Not becoming pseudo-accountants/lawyers trying to discern this mess that we're in.

The PL has ruined football for us.

And that is if we haven`t breached it for 2024... that could be a 4th deduction in 2 years...