Everton fears that they might suffer point deductions this season after breaching the financial rules.
The Daily Mail says the club is preparing to negotiate with the Premier League over their financial accounts amid fears they could become the first club to breach the top flight’s profit and sustainability rules.
The club was due to publish their accounts for the 2020-21 season last December, but publication has been delayed as they seek clarification from the Premier League over how much of their losses can be offset due to the impact of Covid.
The Liverpool-based side is said to have combined losses of over £260m between 2017 and 2020, which in ordinary circumstances would represent a clear breach of Premier League rules, which state that clubs are only permitted to lose a maximum of £105m over three years.
They are expected to record losses for the 2020/21 accounts and their situation has not been made any better after they were forced to sever links with major sponsor Alisher Usmanov last week – which could cost them £300m over the next 20 years.
The Premier League wants all the clubs to submit their up-to-date accounts by the end of this month with the process of vetting those accounts set to take a few months. Any club that would be found to have breached the financial requirements will be charged at the end of the season.
The rules state that clubs in breach of their spending rules can be fined or docked points with the same happening to Derby County in the Championship.