Times article, Burnley/Leeds threaten to sue Everton

[BlueToff]

It looks like they are threatning to do just that

Good for them, they won't be able to like because we've done nothing wrong so the PL don't have a case to answer. It's very weird.

Burnley are doing it because if they go down they're as good as bust in terms of coming back up any time soon and I really, really want that horrid little scummy club gone. Can't stand them.

 

[matty1878]

Was it @matty1878 ……

ye lol

 

[Neiler]

And possibly earlier

All PL clubs have to send documentary evidence of their projected end of year accounts by the end of March mate, they have this years projected accounts now - for the year ending July 22.

 

[catcherintherye]

All PL clubs have to send documentary evidence of their projected end of year accounts by the end of March mate, they have this years projected accounts now - for the year ending July 22.

Yes.

The club has been working closely with the PL. The PL have had all the evidence, and have signed off on the accounts, being under the PL limit.

Maybe they have made a mistake. But that is their mistake now. We cannot take any blame for that, having complied with their rules as we understood them.

 

[BlueToff]

I do not. But it will need to be an accredited, independent firm.

Byrde Enterprises?

 

[Neiler]

Yes I mentioned this a few pages back.

And by auditor you mean, fully qualified accountant. Someone who is legally obliged to say the accounts are accurate.

As a 2nd check, they are then signed off by the PL. Who will also use a secondary auditing firm, comprised of Accountants. They will verify that the accounts are accurate.

It is a criminal offence for either to sign off on accounts that are misleading.

The accounts they have signed off on, show that there has not been a breach of the rules.

It's not impossible, but I would say it is very difficult to prove that 2 sets of auditors, independent to one another, have both got it wrong.

That is before you get into the majority Shareholder of EFC is by trade a highly successful accountant.

The club also said the auditors advised them on what was deductible as a Covid expense.

If you look around the PL there aren’t many clubs in private ownership trying to get private money into the business, we used it to the absolute limit, doesn’t necessarily mean that that is wrong, others might have missed a trick

 

[catcherintherye]

Good for them, they won't be able to like because we've done nothing wrong so the PL don't have a case to answer. It's very weird.

Burnley are doing it because if they go down they're as good as bust in terms of coming back up any time soon and I really, really want that horrid little scummy club gone. Can't stand them.

Their case would be against the PL, not us. They would need to prove the PL were wrong to sign off on our accounts, and the independent financial auditors were wrong.

If they were successful, any case against us would have to be based on us being aware the PL were deliberately making a mistake on their own rules. I'm not sure how they can win such a case. Some of this is a conflict of interest stuff, that the rule setters are the rule deciders, but honestly it would be very hard to prove EFC were knowingly aware the PL-the rule makers- didnt understand their own rules.

Our defence would be, as per the information given, we submitted independently audited accounts that were agreed by the PL. We could not have known corruption/incompetence was going on. I cant really see how the club could lose.

 

[Tin-Tin]

Apparently they want an independent commission formed within 6 weeks, before the fixtures come out. Must be in the hope they are still on them

 

[catcherintherye]

The club also said the auditors advised them on what was deductible as a Covid expense.

If you look around the PL there aren’t many clubs in private ownership trying to get private money into the business, we used it to the absolute limit, doesn’t necessarily mean that that is wrong, others might have missed a trick

Which will only strengthen the case really. They would have to prove, above what independent experts in the field would say, what a reasonable expense would be.

Business incur expenses all the time, particularly during once in a lifetime shocks. None of that is in any way surprising.

 

[Tin-Tin]

So is this all based on us claiming £170m loss due to covid. Are we claiming that the pandemic affected player values because clubs were losing money? Is that what we are trying to claim.

 

[BlueToff]

Their case would be against the PL, not us. They would need to prove the PL were wrong to sign off on our accounts, and the independent financial auditors were wrong.

If they were successful, any case against us would have to be based on us being aware the PL were deliberately making a mistake on their own rules. I'm not sure how they can win such a case. Some of this is a conflict of interest stuff, that the rule setters are the rule deciders, but honestly it would be very hard to prove EFC were knowingly aware the PL-the rule makers- didnt understand their own rules.

Our defence would be, as per the information given, we submitted independently audited accounts that were agreed by the PL. We could not have known corruption/incompetence was going on. I cant really see how the club could lose.

I think they're considering opening a case against both which, if anything, makes it harder for them, because the PL won't admit they were wrong easily. Which, if the accounts have been independently audited - which they will have had to have been - then they won't have done anything wrong.

The PL don't want anyone to go bust or fall foul of the rules they'd have offered the same help.

Everton basically went to the Prem in 2020 and said here fellas, we know we've messed up, we're right on the brink, how can we fix this and stay within your rules.

 

[catcherintherye]

Apparently they want an independent commission formed within 6 weeks, before the fixtures come out. Must be in the hope they are still on them

Yes the suing stuff seems a red herring.

I would suggest that this is a cut off date for new registrations.

I dont see any real incentive for the PL to agree to that, but least because it would state their processes to assess STCC are not fit for purpose. They've also ignored this request for 10 days. It doesnt sound like an org who is going to imminently want to do this.

I suspect the threat of litigation is to try and push them on this.

 

[BlueToff]

So is this all based on us claiming £170m loss due to covid. Are we claiming that the pandemic affected player values because clubs were losimg money? Is that what we are trying to claim.

It's a bit of everything. Loss of matchday revenues etc etc, even some broadcast money had to be paid back because of the loss of games initially.

 

[catcherintherye]

So is this all based on us claiming £170m loss due to covid. Are we claiming that the pandemic affected player values because clubs were losimg money? Is that what we are trying to claim.

We are claiming that there are unique uncrystalised losses due to Covid. In lay terms yes, that players we could have sold, lost value due to a shortage of cash. All of which is very reasonable. You can argue the extent to which it impacted, but the premise is reasonable.

These claims have been independently calculated, and then independently signed off by professionals (although there is not a mention of the specific number).

The PL have also accepted these accounts, and stated we did not breach FFP.

 

[Tin-Tin]

It's a bit of everything. Loss of matchday revenues etc etc, even some broadcast money had to be paid back because of the loss of games initially.

Yes but thats what other clubs have reported and they have come in at £50m (Newcastle) to £65m (Villa).

I think ours is that much as we are trying to say players lost value due to covid as all potential buyers were losing money. I think!