Additionally, Mr. Thelwell’s evidence compared the net spending of all clubs in the Premier League and noted that Everton was only one of four clubs to generate a profit on trading players over the 2021/22 and 2022/23 seasons (taken together).
Mr. Thelwell was questioned by the PL in cross-examination. In essence, the PL suggested that further players could, and should, have been sold, and the PL put to Mr. Thelwell that Everton inadequately budgeted and, instead, recklessly purchased players. The PL suggested that Mr. Thelwell did what he thought was right for football, without having due regard to compliance with the PSR. In particular, based upon documents said to show the effect of player registrations in the Summer 2022 transfer window, it was put to Mr. Thelwell that the transfers within that resulted in losses (included in Everton’s PSR Calculation) of c.£37 million.
While Mr. Thelwell accepted that Everton was required to comply with the PSR, his evidence was that his role was to strike a balance between the rules and regulations and maintaining a competitive team. However, Mr. Thelwell said that competitiveness was subject to compliance with the PSR, and he reflected upon Everton’s transfers: 26 players were transferred out between Summer 2022, January 2023, and Summer 2023, whereas only 13 were signed. Mr. Thelwell disagreed with the PL’s suggestions that the Club had struck the wrong balance and had sailed too close to the wind.
Ultimately, the PL suggested that Everton’s purchase of players was reckless, at a time when the Club knew it was in serious financial trouble.
Additionally, the PL suggested to Mr. Thelwell that one of Everton’s players, Player B, could have been sold during FY23. Mr. Thelwell’s evidence was that Player B had been obtained pursuant to the New Recruitment Strategy, and his value had increased substantially. Ultimately, during cross-examination, Mr. Thelwell accepted that Player B could have been sold, but that during that time he was still building value and developing his skill. Everton’s intention, therefore, was not to sell him during FY23, but to wait, to allow him to develop, and to sell him thereafter.
The PL also asked Mr. Thelwell about the sale of Player C who, so the PL said, Everton sold in January 2023 despite having planned to sell him for a higher figure in Summer 2023. Mr. Thelwell accepted that the decision to sell Player C was made late and shortly before he was ultimately sold.
