This needn't block the deal going through. The lawyers could structure it so that Moshiri has to pay the compensation, or 777 could defer what they pay him until it's all resolved. This is something they can be worked around and I expect it will have been anticipated.777 group aren't willing to pay compensation to the other clubs.
Delicious.
If they pull out Everton will be almost certainly placed into administration causing another point deduction.
Nah City are winning it again.Not necessarily. Utd and Newcastle being shite means it could be top 4.
Moshiri hasn't got a pit to piss in not since Usmanov turned off the taps, can't see Moshiri will be willing to put his hand in his pocket to pay the extra compensation. Guess it also depends on how how much the three clubs agree on the value of a settlement?This needn't block the deal going through. The lawyers could structure it so that Moshiri has to pay the compensation, or 777 could defer what they pay him until it's all resolved. This is something they can be worked around and I expect it will have been anticipated.
It's all manageable. Provided the upper levelMoshiri hasn't got a pit to piss in not since Usmanov turned off the taps, can't see Moshiri will be willing to put his hand in his pocket to pay the extra compensation. Guess it also depends on how how much the three clubs agree on the value of a settlement?
but this is all heresay on the the condition that 777 can afford to purchase fee, still seeing media stories they've been late on payments with their other clubs. Not exactly confidence inducingIt's all manageable. Provided the upper level
of the compensation is more than the price 777 have agreed to pay, they can find a way around it. If I were 777, I'd be insisting that £300m )or whatever figure is agreed) of the purchase price sits in an escrow account and is used to pay the compensation, with any balance paid to Moshiri once it's all done and dusted. The lawyers can work out the logistics and Moshiri would be given conduct of claim (ie allowed to control the process) which wouldn't be controversial. It's likely the only contentious part of that discussion will be the amount withheld, but if the other clubs specify a figure in their lawsuit then even that shouldn't be an issue, provided they file early enough.
Agreed, and it's also possible they'll fail the fit and proper persons test. If either of those things happen then Everton are totally stuffed. And you can only imagine the paranoia among their fans if it's fit and proper persons that does it, given some of the crooks who've been waived through that test in the past (Shinawatra?). They'd be quite entitled to think the football authorities had it in for them if two decisions (the commission and then the takeover) were to go against them in quick succession.but this is all heresay on the the condition that 777 can afford to purchase fee, still seeing media stories they've been late on payments with their other clubs. Not exactly confidence inducing
Also any compensation surely goes against the 3 year allowable loss limits.Agreed, and it's also possible they'll fail the fit and proper persons test. If either of those things happen then Everton are totally stuffed. And you can only imagine the paranoia among their fans if it's fit and proper persons that does it, given some of the crooks who've been waived through that test in the past (Shinawatra?). They'd be quite entitled to think the football authorities had it in for them if two decisions (the commission and then the takeover) were to go against them in quick succession.
Surely not. If that were the case they could just end up in a vicious cycle ending in bankruptcyAlso any compensation surely goes against the 3 year allowable loss limits.
I don't see anything in the rules that says it doesn't, but I think the PL would be open to increasing the limit to accommodate it, and in truth I think that would be fair, otherwise clubs would just go into a downward cycle given the amounts involved. In the commission judgment, they highlight that they had allowed Everton to exclude about £40m of costs on the new stadium that had gone to their profit and loss account, and I think that was fair. There's be a similar principle at stake with the compensation costs.Also any compensation surely goes against the 3 year allowable loss limits.
I was just going to say you did your own TLDR version. Proud of you bud!Beamrider and I say the same thing in a remarkably different amount of words 🙂
Granted - there is a lot of extrapolation of my words to make them mean the same as himself said, but its what I meant 😉
If their is no provision in the rules, the PL would open themselves up to further compensation claims. Thus another endless cycle.I don't see anything in the rules that says it doesn't, but I think the PL would be open to increasing the limit to accommodate it, and in truth I think that would be fair, otherwise clubs would just go into a downward cycle given the amounts involved. In the commission judgment, they highlight that they had allowed Everton to exclude about £40m of costs on the new stadium that had gone to their profit and loss account, and I think that was fair. There's be a similar principle at stake with the compensation costs.
If you were talking £20-30m then I'd say it should be included in the PSR test, and that clubs would have to manage their spending to accommodate it, but there's no way they could accommodate £300m, especially when they have big losses for the previous 2 years
I’m sure Beamrider will provide the expert take on this but it isn’t as simple as a single transaction pushing them over a limit, each transfer cost is spread over the life of the contract (and includes salary), then the whole cost base is assessed over a rolling three year period. As far as I can see Everton where clearly going to fail to meet the 21/22 target for three years despite being let off with lots of adjustments for COVID and the new stadium but failed to take heed of any of the guidance given them resulting in blowing the limit by 20%. That’s not a near miss!I'm no expert in this, at all, I know only what I pick up from conversations, but 10 points for 18 million quid seems tough. I mean it's less than a Rhian Brewster. They got the same deduction clubs get for going bust. Isn't it the kind of crime you'd expect a transfer ban for?
Ah I knew you’d do the fully informed version 🙂I think it's worth recapping the basic rules here. Firstly, clubs are expected to break-even over a three year period. No losses in aggregate over three years.
If they do in their unadjusted accounts alone then there is no issue.
If they don't, they are then allowed to make a load of adjustments, which increase their profit base, which includes some pretty big concessions for covid losses. If after these adjustments they break-even over three years then there are no consequences.
If they exceed £15m of losses, they'll be subject to to PL monitoring. They're on the naughty step.
If they then increase their losses over 3 years by a factor of 6 times the naughty step limit, they will be called before a commission.
The PL wanted a formula for punishment for breaching the upper limit which would be a fixed 6 point penalty followed by a further 1 point for every £5m over that limit. The commission rejected the idea of a formula but meted out the same punishment (assuming you round up the £5 millions).
Everton didn't just get put on the naughty step. They climbed the naughty staircase, went up into the loft, out of the skylight onto the roof, climbed up the chimney and waved their willies at all the passers-by outside.
That's why they were punished in the way they were.
They were warned, and they continued to believe the would get away with it, and they didn't allow any room for error or unexpected events.
They deserve what they've been given, and they're bloody lucky the commission rejected the PL's request to expedite matters, or they'd have been relegated last year.
I read that to the end ... worth it.I think it's worth recapping the basic rules here. Firstly, clubs are expected to break-even over a three year period. No losses in aggregate over three years.
If they do in their unadjusted accounts alone then there is no issue.
If they don't, they are then allowed to make a load of adjustments, which increase their profit base, which includes some pretty big concessions for covid losses. If after these adjustments they break-even over three years then there are no consequences.
If they exceed £15m of losses, they'll be subject to to PL monitoring. They're on the naughty step.
If they then increase their losses over 3 years by a factor of 6 times the naughty step limit, they will be called before a commission.
The PL wanted a formula for punishment for breaching the upper limit which would be a fixed 6 point penalty followed by a further 1 point for every £5m over that limit. The commission rejected the idea of a formula but meted out the same punishment (assuming you round up the £5 millions).
Everton didn't just get put on the naughty step. They climbed the naughty staircase, went up into the loft, out of the skylight onto the roof, climbed up the chimney and waved their willies at all the passers-by outside.
That's why they were punished in the way they were.
They were warned, and they continued to believe the would get away with it, and they didn't allow any room for error or unexpected events.
They deserve what they've been given, and they're bloody lucky the commission rejected the PL's request to expedite matters, or they'd have been relegated last year.
I think it's worth recapping the basic rules here. Firstly, clubs are expected to break-even over a three year period. No losses in aggregate over three years.
If they do in their unadjusted accounts alone then there is no issue.
If they don't, they are then allowed to make a load of adjustments, which increase their profit base, which includes some pretty big concessions for covid losses. If after these adjustments they break-even over three years then there are no consequences.
If they exceed £15m of losses, they'll be subject to to PL monitoring. They're on the naughty step.
If they then increase their losses over 3 years by a factor of 6 times the naughty step limit, they will be called before a commission.
The PL wanted a formula for punishment for breaching the upper limit which would be a fixed 6 point penalty followed by a further 1 point for every £5m over that limit. The commission rejected the idea of a formula but meted out the same punishment (assuming you round up the £5 millions).
Everton didn't just get put on the naughty step. They climbed the naughty staircase, went up into the loft, out of the skylight onto the roof, climbed up the chimney and waved their willies at all the passers-by outside.
That's why they were punished in the way they were.
They were warned, and they continued to believe the would get away with it, and they didn't allow any room for error or unexpected events.
They deserve what they've been given, and they're bloody lucky the commission rejected the PL's request to expedite matters, or they'd have been relegated last year.
I'm actually not sure that they really defied the PL. I reckon they tried to get advance agreement, the PL refused, they disagreed and decided to file anyway because they believed they were right, they just wanted advance assurance if they could get it and were always going to file the way they did. I also think that because of the way the filing works, the adjustments they made would have been clearly disclosed to the PL so I don't think they tried to hide anything.I wish the judgement explained more how the dialogue went, is the only thing. The way it reads, which is the willy waving part, is that they said, come back with math that makes sense, you can't do x y and z. They said, how about x y and z, pretty please? I just don't get how that happens. They send a rough draft that is plagiarized, the prof says , this looks dodgy, and they then do nothing. Were they in any way lead to believe anything else? Was it a matter of just pushing their luck as they couldn't find alternatives due to incompetence, or did they just think it's probably work out, which indeed it may do even with the penalty.
Also, this precedent that a judgement culminating in the same year doesn't produce a fair process is likely to produce risk taking.
Everton fans have raised more than £33,000 to go towards protests over their 10-point deduction handed down by the Premier League, with supporters' groups set to produce banners and flags for their next game against Manchester United on Sunday..
Any players that Everton bought that Leeds were in talks with?I've been trying to work out why Leeds thought they might have a case against Everton, as they finished 19th last season, so they would have gone down even if Everton had been relegated.
I think their argument is that Everton took four points in the games between the teams, and Leeds only took one. But if Leeds had won the game they lost to Everton, the 6 point swing would have kept them up. So I assume their argument goes that the money Everton spent gave them a strong enough team to beat Leeds, and therefore they have a claim.
I think that's bullshit, and I expect their claim to fail.
Leicester and Burnley have claims since they would have stayed up had Everton been relegated last year (the year the breach should have been reported and the 10-point penalty could have been imposed) or the year before (the year the breach actually occurred) so I think they both have a case.
The other teams that were relegated in both seasons would not have been saved had they won both of their games against Everton, which is presumably why they didn't make claims.