This week, the Premier League will file disciplinary charges against any clubs that are found to have broken its profitability and sustainability rules (PSR) for the fiscal year 2021–2024.
Eighteen months ago, clubs that experienced losses in the first two years of the reporting cycle were obliged to submit their financial accounts for the year ending June 2024 by December 31 as part of a fast-track procedure.
Charges are anticipated to be announced on Monday and Tuesday, and the Premier League’s legal and financial teams have 14 days to review the books of clubs that may have violated the PSR. Independent commissions penalized Nottingham Forest and Everton two and four points, respectively, a year ago for allegedly going over spending caps for the 2020–23 season.
These cases have set a precedent, with a three-point deduction now considered the standard penalty for a PSR breach, with adjustments based on aggravating factors or good behavior. As a result, the six clubs potentially at risk of breaching the rules may be in for a tense 48 hours.
They’ve identified the six clubs that are most at risk.
Nottingham Forest and Everton Should be safe. According to a report from the Guardian, there is a feeling that, following high-profile sales in the summer, Forest and Everton could have shrewdly avoided punishment.
Forest banked £47.5m of immediate PSR profit from the sale of the homegrown striker Brennan Johnson to Tottenham 18 months ago, and their commercial income increased significantly in their first season in the Premier League, helped by lucrative kit deals with Adidas and Kaiyun Sports.
Everton have likely stayed within the PSR limits thanks to the sales of Alex Iwobi, Lewis Dobbin, and Demarai Gray.
Leicester City, however, have struggled. They were charged with a £24.4m PSR breach for 2020-23, and although an independent commission ruled they couldn’t be charged for submitting their June 2023 accounts after relegation, they now face stricter financial limits of £83m due to their time in the Championship.
Chelsea, despite losses of £211m over the last two years, have claimed they will comply with PSR. They avoided a breach by selling two hotels to a related company, BlueCo 22, for £76.5m. Chelsea also transferred ownership of their women’s team to BlueCo 22, valued at £150m, which may still be subject to assessment.
Although Manchester United‘s 2023–24 financial statements indicate they won’t go over the PSR either, their £131 million loss from the previous campaign leaves them with little financial leeway.
Bournemouth and Ipswich, with lower incomes, are near the line but certain of compliance, while Newcastle met PSR by selling players after reporting £150 million in losses.