Times article, Burnley/Leeds threaten to sue Everton

[MikeH72]

Tell you what, I quite like the idea of having a rivalry with small clubs. We’re not getting any change out of our actual rivals any time soon, so I wouldn’t mind enjoying smacking these lil bishes up more than I normally would.

 

[WestStandLower]

Yes, that is slightly worrying.

I think the 105m rule is what's in question though; the issue being to what extent are our claimed Covid losses accepted by the Prem. I think in ordinary circumstances then hitting the threshold would surely trigger it automatically.

It is indeed . In effect how much from the total losses are not counted be it for things such as expenses on infrastructure, costs associated with the academy, with woman’s football and of course attributed to CoVID

 

[Neiler]

I don't know about that tbf. If they sued the league they would be told by the court to go to the arbitrator as it's in the contract. The arbitrator would then likely force the league to appoint a commission to consider the appropriate sanction. I think it would be necessary to have the commission even if the arbitrator carried out an investigation as the Prem would have to decide the sanction via the commission. Might be easier then for Leeds and Burnley to just request the commission first which is what they're doing now.

They've asked for an independent commission not a PL commission though. Maybe this is because there is an awareness that we are subject to cost controls under E.

 

[catcherintherye]

They've asked for an independent commission not a PL commission though. Maybe this is because there is an awareness that we are subject to cost controls under E.

The independent commission bits makes no sense.

If we are found guilty, there would already be a the option of a commission to be called. So it would assume:
1) The PL have not found us in breach and are not going to
2) Burnley/Leeds dont feel the PL would support their position (that EFC have broken rules).

 

[catcherintherye]

Yes, that is slightly worrying.

I think the 105m rule is what's in question though; the issue being to what extent are our claimed Covid losses accepted by the Prem. I think in ordinary circumstances then hitting the threshold would surely trigger it automatically.

What we can see is that threshold hasnt been hit. Which would assume, as the club are saying, the PL have accepted our accounts with us being 81m over and within the 105m threshold.

I dont think that is in question. I think what is in question, is the PL choosing to accept our independently audited accounts.

 

[WestStandLower]

They've changed the definition of the following to exclude Covid losses from the PSR calculation;

A.1.5. “Adjusted Earnings Before Tax” means Earnings Before Tax adjusted to exclude costs (or estimated costs as the case may be) in respect of the following: (a) depreciation and/or impairment of tangible fixed assets, amortisation or impairment of goodwill and other intangible assets (but excluding amortisation of the costs of Players’ registrations); (b) Women’s Football Expenditure; (c) Youth Development Expenditure; (d) Community Development Expenditure; and (e) in respect of Seasons 2019/20, 2020/21, and 2021/22 only, COVID-19 Costs, Each of Youth Development Expenditure, Women’s Football Expenditure and Community Development Expenditure and COVID-19 Costs shall only be excluded from the calculation of Adjusted Earnings Before Tax if separately disclosed: (f) by way of notes to the Annual Accounts; or (g) by way of supplementary information which reconciles to the Annual Accounts and which has been subject to independent audit;

See there is the point in the accounts over the years 19/20 & 20/21 the note in the accounts suggests that the COVID losses were combined £82 million. What the notes do say that Everton consider there were other losses due to COVID that fall outside the numbers reported and that is the nub of the issue I suspect as far as Burnley and Leeds are concerned for instance there is a significant sum in respect of impairment something that happens most years but Everton are suggesting it was exceptional due to COVID

 

[everton fan number one]

They've asked for an independent commission not a PL commission though. Maybe this is because there is an awareness that we are subject to cost controls under E.

According to the rulebook the commission would always be constituted by accountants, lawyers etc. rather than premier league board members

 

[catcherintherye]

According to the rulebook the commission would always be constituted by accountants, lawyers etc. rather than premier league board members

And the question would be, why would they want that, if we are in breach of the rules, as that would happen almost automatically.

It suggests they do not agree with the PL.

 

[Neiler]

According to the rulebook the commission would always be constituted by accountants, lawyers etc. rather than premier league board members

But a PL commission as opposed to and independent one.

 

[Neiler]

The independent commission bits makes no sense.

If we are found guilty, there would already be a the option of a commission to be called. So it would assume:
1) The PL have not found us in breach and are not going to
2) Burnley/Leeds dont feel the PL would support their position (that EFC have broken rules).

Or Burnely and Leeds think we have been given a free ride by the PL.

 

[catcherintherye]

See there is the point in the accounts over the years 19/20 & 20/21 the note in the accounts suggests that the COVID losses were combined £82 million. What the notes do say that Everton consider there were other losses due to COVID that fall outside the numbers reported and that is the nub of the issue I suspect as far as Burnley and Leeds are concerned for instance there is a significant sum in respect of impairment something that happens most years but Everton are suggesting it was exceptional due to COVID

The notes say Everton have lost money due to Covid. These have been independently signed off by professionals and accepted by the PL.

Leeds and Burnley, and a football journalist who doesnt even know what year goes into the accounts, seem to think that losing money due to a pandemic is not possible.

 

[catcherintherye]

Or Burnely and Leeds think we have been given a free ride by the PL.

Yes. I think that's the same thing, depending on perspective.

But essentially the PL have verified Evertons accounts. That's the core fact. There can then be interpretations. That would certainly be an opinion.

But their grievance would be with the PL and their actions.

 

[everton fan number one]

But a PL commission as opposed to and independent one.

The commission would by the contract be constituted as below. The idea is that by being so constituted they would be independent. I think the term "independent" commission is a term of art being used by Leeds/Burnley

The Judicial Panel shall include:
W.15.1. authorised insolvency practitioners eligible under Rule E.36 to sit as a member of an appeal tribunal appointed thereunder;
W.15.2. legally qualified persons eligible:
W.15.2.1. under Rule E.36 or Rule F.16 to sit as chairmen of appeal tribunals appointed thereunder;
W.15.2.2. under Rule Y.7 to sit as chairmen of Managers’ Arbitration Tribunals;
W.15.2.3. under Rule W.16 to sit as chairmen of Commissions; and/or
W.15.3. Persons who have held judicial office eligible under Rule
W.57 to sit as chairmen of Appeals Boards; and
W.15.4. Persons who hold nationally recognised qualifications as accountants or auditors, who shall be eligible to be members of Commissions appointed to determine suspected or alleged breaches of Rules E.45 to E.51

 

[catcherintherye]

But a PL commission as opposed to and independent one.

And it is interesting to say why? If you feel the PL are on side, why would you not want them to run it?

 

[Tin-Tin]

Good thread here about where the figures come from