The Premier League have made their warnings big, they’ve made them clear and, for all intents and purposes, there may as well be 24/7 flashing neon signs hanging around the place, too: Do not breach financial rules.
Over the last two years, teams in the top flight have gone from barely acknowledging the existence of profitability and sustainability regulations (PSRs) to now actively being scared of them. The landscape of the Premier League has dramatically been altered – for better or for worse – and it’s not set to end anytime soon.
Everton have been landed with a second points deduction (this time of just two) which adds to their six from earlier this season. If the league had gotten its way, that could have been up to 17. While an ongoing appeal could yet see the most recent two-point deduction reduced, the threat is still there.
Nottingham Forest have been docked four for now, while Leicester City await a possible sporting sanction if they overturn a horrid run of form in the Championship to get promoted. Manchester City remain a separate case entirely for different financial allegations of wrongdoing against them, but the 115 charges loom.
For those that have been pushing the line it remains a treacherous time to be skirting around the edges of the possible punishments. With relegation, European football and the title all on the line, there is so much at stake. The January transfer window was effectively put on unofficial hold whilst clubs prepared new strategies, and for Chelsea the future is uncertain.
Whilst they did not go over the threshold for the rolling three-year period ending 2022/23, there are questions over how their accounts will look after yet more big transfer spending with a season outside of the Champions League. Balancing that with trying to improve the squad in the summer will be a tough ask that raises alarm bells for worried fans.
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Even more concerning is the Premier League’s stance on Everton’s Bramley Moore Dock stadium payments. Under current rules, money put into infrastructure, community projects, academy operations, or the women’s team can be deducted from the figures as clubs try to fall within the generous £105million loss-making parameters.
It is why despite an overhaul bottom line of £120million losses in 2021/22 – released in 2023 – and then £90million for 2022/23 – released in March 2024 – is not terminal for hopes of reaching the threshold with some integrity left. It has been three years in a row that enormous losses have been announced by the club even with a wide-ranging academy sales system in place.
So-called ‘good costs’ are deemed acceptable by the Premier League, leaving wages, transfer fees, and largely other recruitment or staff-based fees for the men’s first team to be scrutinised under PSRs. This, supposedly, leaves room for ambition and stadium rebuilds.
It is a common point of misconception that Everton have been punished for trying to make significant moves towards these two things. For Chelsea, this is increasingly relevant.
In the latest report from the league into Everton’s accounts it is said that £6.5million of interest payments were included in the figures put towards the £105million threshold. This is a movement away from stadium costs being written off, effectively. It comes as the Toffees prepare to leave Goodison Park and move into a new 60,000-seater.
Chelsea themselves are in some sort of process toward bumping up their own capacity. Stamford Bridge has been a massive problem for custodians at the club for years going back to the stand-by-stand rebuild in the 90s.
Roman Abramovich sought planning permission to make grand changes to the current SW6 site as well as coming close to civil war within the club after attempts to move the side to Battersea in the early 2010s. Four years before his sale of the club he had more plans for Stamford Bridge that never materialised. The Great Ground Problem was one of the key parts behind the Todd Boehly-Clearlake Capital consortium’s bid to buy the club.
Almost two years on from the transfer of the club’s ownership and very little tangible progress has been made. Stadium experts have been appointed (and also subsequently left), rumours have been rife, but ultimately Chelsea remain a long way from expanding there middling 44,000 capacity in any form.
On Wednesday the parent company of Chelsea, BlueCo, confirmed an agreement had been reached to purchase the near-two acre Sir Oswald Stoll Mansions site behind the West Stand. Although this doesn’t solve all the problems it does ‘increase’ the club’s ‘footprint at Stamford Bridge,’ chief operating officer Jason Gannon said.
The land can now be used in thorough plans for the future, though reports suggest that the club will not use the site for their own causes until 2027 as they help to rehouse the veterans. That still doesn’t make the process any more financially viable though. Chelsea will need to fork out what is expected to be well over £1billion (at a rough and very minimal estimate) regardless of their course of action, to reach even a 60,000-spectator arena at any site they eventually deem suitable.
As mentioned, this will not directly infringe on them with regards to PSRs or even an expected move towards UEFA’s squad cost ratio model to come, but the latest developments in Everton’s case do raise questions. The Merseyside club have had their £6.5milion dispute with the league over the interest payments deferred until next season, and the recent comparison with Tottenham’s own ground move is important.
Spurs’ loan payments towards the stadium – which forms part of a giant if not healthy debt – are not factored into PSRs. However, Everton’s scenario is slightly different. It has been explained that when Tottenham’s naming rights deal was suspended, their loans were moved to stadium costs, therefore ruling them out of the PSR equation.
For Everton the change towards not having these costs capitalised could leave them in a tough spot for not only the current appeal and points deduction situation but also moving forward. Chelsea will be taking note as their own stadium plans are being considered, with repercussions on the cards if all doesn’t come out well.
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