The Premier League has imposed a 10-point deduction on Merseyside club Everton FC for breaching the financial fair play regulations (FPP) established by the league. Consequently, they have dropped to the 19th-place relegation zone following the points reduction.
The recent judgment has sparked a fierce debate among fans and other stakeholders as the potential punishment looms over the defending champions Manchester City and Chelsea, both facing scrutiny for Financial Fair Play (FFP) breaches in the past, with the possibility of relegation hanging over them.
Will Manchester City get relegated?
Manchester City, the treble winners led by the Spanish tactical genius Pep Guardiola, face the possibility of penalties over the alleged manipulation of financial rules post- Abu Dhabi takeover from 2009 to 2018, a period during which they lifted the Premier League title three times.
The Financial Fair Play Rules (FFP) are designed to ensure that clubs operate within their financial means. Essentially, these rules restrict teams from spending more than they have earned through their sources of income. Moreover, FFP keeps track of clubs’ financial activities, monitoring both expenditures and revenue to ensure compliance with the established rules.
The following regulations are framed to build a sustainable model for clubs to function, and breaches could face potential punishment from the authorities or the FA. Premier League champions Manchester City have been found guilty of violating the rules in the past, specifically failing to provide enough documents to justify financial aspects, including the disclosure of wages.
The Premier League transferred the case to the independent regulatory commission to investigate charges against Manchester City and Chelsea. If the alleged charges are proven, a 30-point deduction or expulsion from the league through relegation could be imposed on them.
In 2020, City was handed a 2-year ban from European competition and a £26.8 million fine. However, they challenged the decision, seeking to overturn it in the Court of Arbitration for Sport (CAS), citing that the charges were too old to be punished.
Will Chelsea get relegated?
The EPL committee and English FA had already been investigating Chelsea for unauthorized payment transactions made during the previous owner Roman Abramovich’s glorious era. Although the current owner Tod Boehly has no relation to the charges, the new Chelsea board themselves informed the Premier League about the possible breaches.
The Blues recently underwent an ownership takeover by an American consortium led by Todd Boehly and Clearlake Capital in June 2022. Despite self-declarations of insufficient financial information between 2012 and 2019, UEFA sanctioned a £26.8 million fine. Now, the regulatory commission’s investigation will determine whether Chelsea will suffer a similar fate to Everton or perhaps even get worse for breaking the Financial Fair Play (FFP) rules.