JUST IN: Everton and Nott. Forest expecting to be found in breach of the League’s spending rules

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Everton and Nottingham Forest are expecting to be referred to an independent commission over breaches of the Premier League’s profitability and sustainability regulations (PSR).

Clubs will learn on Monday whether they have fallen foul of the league’s financial rules under new guidelines introduced to ensure any basic breaches are dealt with in time for punishments to be levied in the same season as a charge is brought.

Under the league’s PSR, clubs are allowed to lose a maximum of £105million ($134m) or £35m per season over a rolling three-year reporting cycle.

Everton are already appealing against a 10-point deduction relating to the 2021-22 season while Forest would join Manchester City as the only top-flight clubs to be charged with breaking these regulations.

Under the guidelines both clubs are now at risk of a fine or a points deduction with formal notification of any charges set to come on Monday.

Both clubs have prepared mitigation and are expected to robustly argue their case.

Forest’s permitted losses are lower than the £105m limit because the club were in the Football League during a portion of the accounting period. Their top figure instead amounts to £61m, which breaks down as £13m for the 2020-21 and 2021-22 seasons when they were in the Championship, plus £35m for last season, their first back in the top flight.

Forest were always at risk having spent around £250m on new signings since securing promotion, while highly-publicised financial issues under owner Farhad Moshiri as well as a £760m new stadium left Everton vulnerable to a second charge.

Forest are likely to point to the £47.5m sale of Brennan Johnson to Tottenham Hotspur after the accounting cut off as mitigation, while Everton’s argument will — as it is in their current appeal — centre on the expenditure around the Bramley-Moore Dock project.

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