OFF WITH THEIR POINTS

Printed in the National League South game v Braintree Town Saturday 25th November 2023   We won 3-0 in front of 672

Maybe it was just the timing, but it striked me as odd that as soon as the government announced plans for a football regulator, the Premier League imposed their first ever punishment on one of their clubs. 

Chelsea and Manchester City be a little more nervous now that Everton have been hit with a 10 point deduction after a ruling by an independent commission? According to sports lawyers they should be as it sets a huge precedent and they could also face large points deductions.

It was two of last seasons relegated clubs who sent a joint letter to league officials clarity over whether the Toffees' losses of £371.8 million over the previous three years were in breach of financial fair play rules. The rules say you are ‘only’ allowed to lose £105 million over a three-year period. The commission found that Everton had overspent by £19.5m, concluding: "This was a serious breach that requires a significant penalty." It added that Everton's transfer business while threatened with punishment "was recklessness that constitutes an aggravating factor."

A previous ruling in May agreed that the relegated clubs would be able to apply for compensation through the Premier League should Everton be found to have broken the rules.

Forget the financial insanity that Everton lost £371 million in 3 years when you are only allowed to lose £105 million in that time; forget that relegated clubs get a handsome parachute payment - could this ruling open a Pandoras box?

Everton closed their statement about their punishment with what looked like a warning. “The club will also monitor with great interest the decisions made in any other cases concerning the Premier League’s profit and sustainability rules.”

This is going to be a proper bun fight.

An independent commission is still looking over the 115 Manchester City charges, which is a case of far greater complexity. Chelsea are under investigation for a range of potential breaches from the Roman Abramovich era, after the Bureau of Investigative Journalism reported allegations of secret payments possibly relating to transfers and managerial appointments.

Infact the three clubs who have lost the most money in the history of the Premier League are….drum roll...Everton, Chelsea and Manchester City.

Miguel Delaney Chief Football Writer for the Independent wrote “This potential explosion of off-field examinations and litigations is increasingly seen as the inevitable consequence of an era in which the Premier League was just too laissez-faire in regulation. The view of many competition insiders is that the old Richard Scudamore regime didn’t look seriously enough for breaches as it didn’t want to harm the Premier League brand.”

But kicking the can down the road might now have very serious consequences for the Premier League brand. Delaney added “Might this lead to something akin to the Premier League’s Calciopoli era where, as with 2006’s Serie A investigation into match-fixing and referee appointments, there is so much litigation; where the very reputation of the game is affected?’”

So is the Premier League finally baring its teeth? Yes and no, says leading sports lawyer Catherine Forshaw. “They have more than one eye on the independent regulator that is due to come in,” she says. “Basically, the Premier League are saying that they want to retain some of their regulatory powers to govern their own league. This is a way of showcasing that they’re able to do that – and they will take breaches of the regulation seriously.”

The Football Governance Bill will amongst other things establish an independent football regulator, that is “committed to breaking this cycle of inappropriate ownership, financial instability and poor governance practices.” It will strengthen the owners and directors’ tests, give fans a veto over changes to their clubs badges, home shirt colours and moving grounds – and prevent clubs from joining breakaway leagues.

The problem for football is that its all a circus. Inevitably those with the most cash win while others overspend to try and grab a seat at the top table. And that’s without even mentioning some very dubious owners.

We love football because we don't know the twists and turns, who will win the match. We love the Luton Town story, in as much as they were hammered so much by financial issues and points deductions they lost their place in the Football League but have somehow clawed their way back to the top.

This casino capitalism way of running football also has a massive knock on effect on every league. How many Championship clubs lose money chasing the dream? According to the Deloitte Annual Review of Football Finance 2022, the combined 24 clubs of the Championship spent £1.25 on wages alone for every £1 they earnt. One of those clubs Reading is now bottom of Division One and piling up points deductions at an alarming rate.

Wrexham had to spend big to get out of the National League in part because of the closed shop of the English Football League having just one automatic promotion. This creates a non league bottle neck and more reckless spending.

Ebbsfleet spent a fortune on getting promoted out of our league last season but like nearly every promoted club is finding it a real struggle.

So how can the likes of Slough ever compete in the league above without some financial fair play rules?

Of course the Premier League will now fight tooth and nail to water down any government plans for an independent regulator. Everton might be their first sacrificial lamb.