Everton could face court battles if they stay in Premier League after expert view on Sunday
Everton face the prospect of years in court if they secure Premier League survival if a financial expert’s view on their huge losses comes true.
The club announced a £120.9million loss in their most recent accounts, released on Tuesday (29 March), taking their three-year losses to £371.8million (Guardian), far in excess of the number permitted by league sustainability rules, £105million.
The Toffees believe they are compliant because of huge amounts attributable to Covid-19 and therefore permitted, including major devaluing of players sold due to a depressed transfer market, but the fact that they still spent heavily themselves in that time could leave them open to challenge.
Ben Godfrey – £25million (Independent), Allan – £21.7million (Sky Sports), and Abdoulaye Doucoure – £25million (Sky Sports), all arrived last season, which Dr Rob Wilson of Sheffield Hallam University believes could lead to relegation rivals calling foul.
He told the Daily Mail: “You would imagine the clubs that are fighting down at the lower end of the table might get quite vocal.”
“If you are in the bottom six you have been especially impacted. That transfer activity has still improved Everton’s playing performance beyond what other clubs could do.”
Problems down the line?
That would potentially leave the club open to the kind of drawn-out legal battle that West Ham were dragged into when they beat the drop with Carlos Tevez in the side.
Sheffield United went down in 2007 and subsequently sued the Hammers before reaching an out of court settlement nearly two years later (Sky Sports).
The Premier League opted to implement a fine rather than a points deduction originally on that occasion for Tevez breaking third-party ownership rules, leading to the legal wrangling.
If it is subsequently found, this season or next, that the club has made too many allowances for themselves by claiming a huge number was due to Covid, there may be trouble ahead.
The University of Liverpool-based expert Kieran Maguire said on The Price of Football podcast that Everton say it cost them £170million, compared to Sheffield United who said their number was £21million, and Aston Villa’s Covid-losses of £56million.
Perhaps the Premier League accepts the numbers coming out of Goodison, but Dr Wilson admits that while all clubs will be offsetting losses to costs this way, “we have not seen it before on this scale”.
He said: “Nothing like this, but then Covid was unprecedented. The Premier League will have to decide what it is prepared to bear.
“They are going to be very fortunate if they do not get sanctioned because the losses are significant. It will be skin of the teeth stuff.”
If punishment eventually does come down, that could open the club up to the likes of Norwich and Watford coming after them, so the issue may not go away for considerable time.
In other Everton news, sources close to Dele Alli claim no issues currently but that could change in the summer.
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