Leicester City to pursue ‘legal action’ against Everton after Premier League relegation

According to The Guardian, a hearing date of 25 October has been scheduled for the Financial Fair Play ruling on Everton, following legal action initiated by Leeds United and Leicester City, informs the TBR.

The Toffees have been referred to an independent commission over an alleged breach of financial fair play regulations, as reported by The Athletic. This investigation began when Burnley and Leeds submitted letters to the Premier League in May 2022. Premier League rules state that clubs can only incur a maximum loss of £105m over a three-year period. However, Everton recorded losses of £371.8m during this timeframe, attracting scrutiny from other clubs in the English top flight.

The Guardian also reports that Everton is facing legal action from relegated clubs Leicester, Leeds, Southampton, and Premier League newcomers Burnley. The potential financial consequences of losing the case could reach tens of millions of pounds. The hearing for the alleged breach of the Premier League’s financial fair play rules is set for 25 October. After months of silence, Everton finds itself under scrutiny for its financial records and perceived incompetence involving the club board and majority shareholder Farhad Moshiri.

Everton fans are hoping that the departing directors can take responsibility and not use their unemployment as a means to evade accountability if the outcome of the hearing is unfavorable. This development in March adds to the ongoing challenges faced by the club, which has been subjected to extensive scrutiny and criticism in recent years.

Everton now faces an anxious wait until the October date and may potentially face significant sanctions, despite the impending MSP Sports Capital takeover, which the club believes will usher in a new era. The legal case could leave Everton in a financially precarious position, prompting them to consider selling many of their key players. However, even if they manage to address those issues, ruling against them on 25 October will bring further problems.