Times article, Burnley/Leeds threaten to sue Everton

[MrGrumpy]

I suspect the Euro scab situation is behind this too.

Different this time will be sky will be involved and it will be all bells and whistles and be dead within 3 years

 

[CrabbyPaddy]

Email chain between Leeds and Burnley "this ain't look good lads, let's try get Everton"

100% - radio silence when we were 5 points from safety.

 

[catcherintherye]

If you wanted to be very pedantic about it, we could take a case against the PL for a lack of application of the rules in some our games this year, we even have an acknowledgement, even an apology from the referee and the PL that they didn't apply the rules properly in our game against City. Say that decision ends up costing us 3 million finishing behind Southampton - we have a grievance.

We wont of course, but my point is the PL cant allow legal action to be taken over how they apply their rules as a constant avenue for clubs - they would never be out of the court.

It would open a precedent that would be very undignified.

 

[Yorkie89]

It’ll probably only be one club after one of them stays up

 

[Tin-Tin]

It's irrelevant. According this the PL have had access to our accounts since November. Just sour grapes from Leeds/burnley

Everton lose more than £100m for third successive year but avoid sanctions

Everton lost £120.9m across a Covid-impacted 2020-21 season but the support of billionaire owner Farhad Moshiri has helped keep the club stable

www.theguardian.com

Budget and transfer restrictions are the first sanctions which can be applied but the PA news agency understands there will be no penalties forthcoming due to the extenuating circumstances associated with Covid.

The Premier League has had access to Everton’s latest accounts since November and with the Goodison Park club continuing to be fully transparent and cooperative, club officials remain confident that Everton are in a good place

 

[catcherintherye]

The 21/22 numbers have crystallised losses averaged at circ £49 million over the two COVID impacted accounting years.

In the notes that accompany the accounts it is suggested that the numbers reflected in the accounts by way of impairment and onerous contracts in respect of players that were already at Everton were exceptional and due to COVID, that is subjective take on matters but I suspect fully reasonable but in terms of trying to argue that we could have got £x for a player yes that again is subjective but I doubt 5hat could realistically be argued.

The issue is though, that those assumptions were (essentially) stated in the accounts, and signed off on. There is also some suggestion that additional legal independent help was requested to work out the values write downs. So the club have sought professional opinion on it, and therefore the valuations are likely to be accurate and reasonable.

 

[brieverton]

 

[Yarrgh]

They're looking for a massive parachute payment.

Nail on head.

Rattling a tin at the traffic light as the premier league teams in their cars are just about to drive off into the distance.

 

[catcherintherye]

This is a long post for which I apologise and no doubt I will get pelters for it’s contents

People are getting confused and assuming that audited accounts ( due to turnover there is a regulatory and legal obligation for them to be audited) are compliant as a matter of course with the PL Profit and Sustainability (FFP) rules. They aren’t although a lot of the numbers of course are the numbers submitted

It’s not till March 2022 that clubs were obliged to submit their latest audited accounts 20/21 numbers) alongside interim and of course un audited numbers for the 21/22 season .

My guess is that in March 21 the audited 19/20 numbers and the interim numbers for 20/21 set alarm bells ringing and the losses based on those interim numbers and the projections for 21/22 required The PL to take action in accordance with their rule E15 in effect Everton had to agree a budget for the current year.

Why I suspect other clubs are twitchy is two fold on is because of the deductible numbers that Everton have submitted in respect of COVID ( there isn’t anything specific in the 21/23 rule book as to what is allowable although there is a set of unpublished guide that accompanies the forms ) and secondly the rules are clear in that if losses do indeed exceed £105 over a rolling 3 year period then there isn’t any discretion the league are required to refer the matter to a PL commission.

Here’s the rule

If the PSR Calculation results in losses of in excess of £105m:

E.51.1. the Board may exercise its powers set out in Rule E.15; and
E.51.2. the Club shall be treated as being in breach of these Rules and accordingly the Board shall refer the breach to a Commission constituted pursuant to Section W of these Rules.

So it all comes down to what the PL board have or have not agreed and it seems difficult to see how the PL board could agree to anything until March when the interim 21/22 numbers would be available and also you need to wonder why other clubs who no doubt will have been working using the same guidelines haven’t pushed matters such as reduced sponsorship in the same way.

Sorry but its highly likely that the league will have to look at the numbers but even then you wonder what the sanctions would be.

I alongside everyone that’s commenting on the issue have no idea what the numbers on the appropriate PL form show nor when that form was submitted but the PL board is one thing and yes they are empowered to a degree but are answerable to the clubs

The Premier League STCC is a reflection of the PL which is generated from the Income statement on a set of accounts though. I appreciate there may be slight differences, and duplication, but ostensibly they are the same function. (I cannot see a club declaring information to the PL which is wildly different to the Income statement).

It would make no sense to judge accounts and financial performance, but ignore the core documents that relate to the accounts.

 

[davek]

Bigger picture:

Look at the state Liverpool were in before FSG: no sanction was taken there when they became insolvent and repossessed by the RBS. That was industrial scale figures and a real advantage handed to them by the PL.

The City sponsorship situation.

The Chelsea debt situation.

Newcastle crashing through the PL fit and proper persons test.


Are the PL clubs and the PL really going to allow Everton to end up sanctioned over what they did - in AGREEMENT with the PL?

Pffffffft!!!!!!!!

 

[Yarrgh]

The issue is though, that those assumptions were (essentially) stated in the accounts, and signed off on. There is also some suggestion that additional legal independent help was requested to work out the values write downs. So the club have sought professional opinion on it, and therefore the valuations are likely to be accurate and reasonable.

Heck, we might even have a billionaire accountant who knows a thing or two about accounts and accounting giving it a thorough look through.

 

[Tin-Tin]

This is what we are attributing losses too?

 

[Khalekan]

 

[catcherintherye]

The suggestion is that it’s not just those two that are gunning for you and whilst the only other club mentioned was Arsenal in April it was reported that far from the matter having been resolved legal action was being talked about even then.

Premier League rivals looking to sue Everton

Several Premier League clubs are conducting a forensic analysis of Everton’s accounts amid suspicion they have breached the top flight’s spending rules.

www.caughtoffside.com

I'm not sure why Arsenal would be bothered. But again, the legal action would be against the PL for not enacting the rules properly. As has been stated, I'm not sure you can sue a business for poor financial performance. That would be absurd.
They could perhaps sue Everton if it was felt they had knowingly tried to mislead the PL. But given the accounts have been signed off independently, and also accepted by the PL, and there have been ongoing discussions with the PL, it would be almost impossible to substantiate such a claim.
Any impartial court would recognise Everton as a business have gone over and above in ensuring the PL were given all of the information.

 

[catcherintherye]

This is what we are attributing losses too?

There was a massive reduction in spend. I don't think that point could even be contested.