Everton accused of breaking EPL financial rules

Everton players react after the English Premier League soccer match between Chelsea and Everton at Stamford Bridge stadium in London, Saturday, March 18, 2023. (AP Photo/Kirsty Wigglesworth)

LIVERPOOL, England -

The English Premier League referred Everton to an independent commission on Friday over an alleged breach of financial rules last season.

Everton reported three-year losses of nearly 372 million pounds ($454 million). The league's profit and financial sustainability rules allow clubs to lose a maximum of 105 million pounds ($128 million) over a three-year period or face sanctions.

Those sanctions include points deductions for serious breaches.

The league said proceedings before the commission will be confidential and heard in private.

Everton said it was "disappointed" to be referred to the commission and was "prepared to robustly defend its position."

"The club strongly contests the allegation of non-compliance and together with its independent team of experts is entirely confident that it remains compliant with all financial rules and regulations."

Everton said it has provided information to the league "in an open and transparent manner" for several years and has "consciously chosen to act with the utmost good faith at all times."

Everton's majority owner is British-Iranian billionaire Farhad Moshiri, a business partner of Russian metals tycoon Alisher Usmanov. Everton announced in March last year it halted its major sponsorship with companies belonging to Usmanov after he was sanctioned by the European Union in the wake of Russia's invasion of Ukraine.

Everton avoided relegation by four points last season. Burnley, which was relegated, and Leeds wrote to the league in May to question whether Everton's three-year losses breached financial rules.

Everton is 15th in the 20-team league, two points above the relegation zone.