Financial Fair Play became a hot topic last month when Everton were docked 10 points for breaching Profit and Sustainability Rules. These rules are in place to stop club’s losing a certain amount of money. After losing £124.5 million Everton were found to be in breach of one rule. This was above the £105 million threshold permitted under the PSRs.
As a result of the point deduction, Everton dropped down to the relegation zone. However since then they have bounced back by winning their last three games to escape the bottom three. In the process they even beat Chelsea 2-0 this week.
Alleged Financial Fair Play breaches by Chelsea and Manchester City
After the Everton desicion, questions began being asked of Chelsea and Manchester City who have previously been under the microscope for financial irregularities. Chelsea were fined £8.6 million for ‘submitting incomplete financial information’ during the Abramovich era, earlier this year. The Blues were also handed a transfer embargo in 2019 after breaching 150 rules over several years, involving 69 academy players.
Meanwhile, in February, Manchester City were charged 115 times for a number of different breaches dating back to 2012. Recently, they agreed upon a trial date with the Premier League for next Autumn.
The earlier punishments for Man United and Barca
Earlier this years, Manchester United and FC Barcelona were handed FFP punishments. Man United was handed a €300,000 fine for ‘minor break even deficits’ for the financial years spanning between 2019 and 2022. Spanish giants Barcelona were slapped with a €500,000 fine ‘for wrongly reporting’ in the financial year 2022. They had reported profits on disposal of intangible assets which are not a relevant income under the regulations.
Everton’s punishment seems harsh when compared to Man United and Barca. All the 3 clubs were penalized for just 1 breach, yet the difference in intensity of punishments. Chelsea and Man City will be hoping for a FFP punishment similar to the one handed out to Barca and Man United.
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