Everton and Nottingham Forest have been referred to an independent commission for breaching the Premier League's profit and sustainability rules.
The Toffees have already been docked 10 points this season for breaching the regulations, which allow for losses of no more than £105million over a three-year period, in their 2021-22 accounts. They now face an additional charge for their 2022-23 accounts, which were submitted before the end of December.
The Premier League have introduced new guidelines to ensure any basic financial breaches are dealt with in time for punishments to be handed out in the same season as a charge is brought.
To charge Everton twice in the same campaign would be controversial, however, particularly given Manchester City are facing 115 Premier League charges for financial irregularities, but the case against them is yet to be heard and is expected to drag on for considerably longer.
The Toffees have appealed against their 10-point deduction and a new disciplinary commission is set to convene to hear the case.
Forest have also been accused of a breach of the regulations, with both clubs said to be preparing robust defences.
Forest were at risk having spent around £250million on new signings since securing promotion from the Championship in 2021-22, although they are likely to point to the £47.5m summer sale of Brennan Johnson to Tottenham, which came after the accounting cut-off, as mitigation.
Everton, meanwhile, have also worked to reduce their net spend and wage bill in recent seasons, selling Richarlison to Spurs and Anthony Gordon to Newcastle, but well-publicised financial issues under owner Farhad Moshiri, as well as the costs of their new £550m ground at Bramley-Moore Dock, leave them vulnerable to another charge.
In an official statement on Monday, the Premier League said: "Everton FC and Nottingham Forest FC have each confirmed to the Premier League that they are in breach of the League’s Profitability and Sustainability Rules (PSR). This is as a result of sustaining losses above the permitted thresholds for the assessment period ending Season 2022/23.
"In accordance with Premier League Rules, both cases have now been referred to the chair of the Judicial Panel, who will appoint separate Commissions to determine the appropriate sanction.
"Commissions are independent of the Premier League and member clubs. The proceedings are heard in private with the Commissions’ final decisions made public on the Premier League’s website. The League will make no further comment until that time."
Forest said: "Nottingham Forest acknowledges the statement from the Premier League confirming that the club has today been charged with a breach of the league’s Profitability and Sustainability Rules.
"The club intends to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution."
Everton's own statement read: "Everton Football Club acknowledges the Premier League’s decision to refer a breach of Profit & Sustainability rules (PSR) for the assessment period ending with the 2022/23 season to an independent Premier League commission.
"This relates to a period which covers seasons 2019/20, 2020/21, 2021/22 and 2022/23. It therefore includes financial periods (2019/20, 2020/21 and 2021/22) for which the Club has already received a 10-point sanction. The Club is currently appealing that sanction.
"The Premier League does not have guidelines which prevent a club being sanctioned for alleged breaches in financial periods which have already been subject to punishment, unlike other governing bodies, including the EFL. As a result - and because of the Premier League’s new commitment to deal with such matters “in-season” - the Club is in a position where it has had no option but to submit a PSR calculation which remains subject to change, pending the outcome of the appeal.
"The Club must now defend another Premier League complaint which includes the very same financial periods for which it has already been sanctioned, before that appeal has even been heard. The Club takes the view that this results from a clear deficiency in the Premier League’s rules.
"Everton can assure its fans that it will continue to defend its position during the ongoing appeal and, should it be required to do so, at any future commission - and that the impact on supporters will be reflected as part of that process."
Everton sit 17th in the Premier League table, just one point outside the relegation places, having played a game more than Luton, while Forest are three points better off following back-to-back victories under new head coach Nuno Espirito Santo.
