It comes after Mail Sport revealed that five clubs, including Southampton and Nottingham Forest, have filed a complaint with the Premier League claiming they would be entitled to compensation if Everton is found guilty. The case has now been stepped up to the independent hearing.
The Lancashire club, along with Leeds and Leicester, have formally informed the Premier League that they intend to take legal action.
It is understood that Forest and Southampton have dropped out of the anti Everton alliance, with the former remaining in the top flight last season and the latter finishing 11 points adrift of fourth-from-bottom Everton, meaning they would not have been able to survive even if deducted points had been applied to the Goodison side.
Leeds, like Leicester, were also relegated from the top flight the previous season, when Everton’s spending also led to complaints after three years of rolling losses totalling £372m. The club escaped being charged as Covid-related allowances allowed the club to remain in the top flight.
Everton were hit with a financial penalty from the Premier League after publishing their latest accounts in March, which showed a £313,5m loss over the past three years. Under the club’s profit & sustainability rules, clubs can only lose £105m in a three year period, but expenses for infrastructure, women’s football, and community projects have been taken out of the calculations.
If other clubs take legal action against Everton, it would be a major blow to their plans to buy the club, which are already in doubt due to questions about the source and adequacy of their finances.
The club can also claim losses directly linked to Covid, and in their latest accounts, they claim Covid losses amount to £90,4m in the past three years, but this still leaves their total loss at £223,1m – significantly more than the £105m threshold.
After reaching an agreement in principle to purchase the club from Farhad Moshiri last month, the Miami-based investment firm gave Everton almost £20 million to aid with cash flow concerns. However, the club remains in a precarious financial position that would be made worse by a protracted legal dispute.
After spending almost £750 million over a contentious seven-year period as manager, Moshiri has made it clear he would not supply any additional funding. In addition, the team has to find over £300 million to finish building their new stadium at Bramley-Moore Dock.