According to a sports lawyer, Everton’s 10-point deduction for violating financial rules is a reflection of the Premier League’s effort to limit the authority of an independent regulator. Clubs relegated at Everton’s expense may pursue legal action following the unprecedented sanctions.
On Friday, Everton was the first Premier League club to face point deduction after violating profitability and sustainability rules (PSR) in the 2020-21 season.
Simon Leaf, head of sport at Mishcon de Reya, suggested that the Premier League’s measures were influenced by British lawmaker Tracey Crouch’s recommendation for an independent regulator and the inclusion of the Football Governance Bill in the King’s Speech.
The British Prime Minister has confirmed plans for an independent regulator to oversee football clubs, giving an Independent Regulator for Football (IREF) the power to address financial issues and other systemic concerns.
Leaf expressed that this demonstrates the Premier League’s attempt to show that powers given to the IREF should be limited, as they have now improved their own governance. However, the impact of imposing sanctions on clubs may affect the league’s brand value in international markets and TV negotiations.
The Premier League had previously acknowledged the need for changes in football governance and emphasized its implementation of “stronger and more independent self-regulation.”
Fair Game UK, an organization advocating for improved football governance, stated that Everton’s situation highlights the urgent need for a “culture change” in football. They argued that a regulator with real authority is necessary to prevent similar scenarios in the future.
Everton’s recent sale to 777 Partners, reportedly worth over 550 million pounds, is unlikely to be affected by the points deduction, as it was probably accounted for in the purchase agreement.
While Everton is the first club to be sanctioned, Manchester City and Chelsea are also under investigation for potential breaches of financial rules. As Everton appeals the decision, they may face additional claims from other clubs affected by the relegation caused by Everton’s misconduct.
Senior sports lawyer Tom Murray advised Everton to act swiftly in their appeal, as they have a short seven-day window to submit their case. The process is expected to conclude before the end of the season.
(Reporting by Trevor Stynes and Rohith Nair; Editing by Ken Ferris)
