Everton could be on the brink of disaster, with administration on the horizon.
That's according to one expert, who has delivered the verdict following news of Everton and Nottingham Forest's impending points deductions. The Toffees have already been deducted 10 points this season for failing to comply with the Premier League's Profit and Sustainability Rules (PSR).
Now, Robert Wilson, football finance expert and professor of economics at Sheffield Business School, has told LuckyBlock.com that “the rug could be pulled out from underneath” Everton, with the Merseysiders falling into a spiral, should things continue.
“If we assume that Everton's appeal fails, the previous points deduction sticks, and they receive another sanction for the latest breach, then Everton will be caught in a vicious cycle,” Wilson said.
“Relegation from the Premier League will result in Everton's revenue being decreased, which will make it more difficult to recover from last year's losses. I think there's an increasing reality that the club might end up in administration, something that would be catastrophic for them.”
On top of the money that the club have spent on transfers, Everton are set to move into a state-of-the-art new stadium, which Wilson says could be a defining factor in the club's future financial health.
“Everton's stadium redevelopment is all based on ongoing financial sustainability,” Wilson continued. ”The rug could be pulled out from underneath them before they can achieve that! Everton did, however, have years and years of overspending and what I'd consider to be pretty ordinary financial management. That's now coming home to roost.
“There's been a lot of discussion about the double jeopardy of Everton being charged twice for the same offence. That, however, isn't quite true, as 75 pe cent of the charge sheet refers to the previous season, which they've already been sanctioned for. That's why I think they may get away with this particular breach.
“It'll be interesting to see what the value of the breach is when it's released. The original FFP breach from the 2019/20 to the 2021/22 season was £124.5 million, which was £20 million over the threshold. They won't be over that much for 22/23.
“Two seasons were collapsed due to COVID, and you've also got this new PSR structure which requires the in-year reporting, which is what they've been burnt on this time around, along with Nottingham Forest.”
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