Everton could reportedly face legal action over £373m losses 4 months ago

Everton could reportedly face legal action over £373m losses

Everton recorded a financial loss of over £300m for the last three seasons

Premier League clubs are reportedly considering whether to sue Everton over their financial accounts from the past three seasons following suspicions they breached the league's spending rules.

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The Toffees have recorded losses of over £300m

Everton legal action

The Toffees recently recorded losses of £373m, despite Premier League rules stating that clubs are not permitted to lose more than £105m across a three-season period

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Due to the impact of covid-19, this rule has been somewhat relaxed, with investment in stadiums and infrastructure, women's football and community projects all deemed exempt from the spending.

However, as reported by the Daily Mailit was revealed last month that Everton have an agreement in place with the league's hierarchy in which they would be able to consult them over contract negotiations and signings in a bid to avoid exceeding the spending limit.

The revelation has reportedly left clubs angry after the Merseyside outfit delayed their 2020-21 accounts, sparking more concerns from top-flight members as to how they had not breached the financial limits.

In their published accounts, Everton explained that the affects of the pandemic led to losses of of £170m across the last two years, however, clubs have pointed out that the side's write-offs are considerably higher than any other top-flight team.

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What could happen if Everton are found guilty?

Everton legal action

Should Everton be found guilty, they could face a number of sanctions which include a points deduction and a lengthy fine. The club's off-pitch troubles come while Frank Lampard's side are in the midst of a relegation battle.

A 2-1 defeat to West Ham United on Sunday leaves the Toffees in 17th, just three points clear of the drop.

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Everton travel to Turf Moor on Wednesday night to face-off against relegation-threatened Burnley.

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