Under the Premier League's profitability and sustainability regulations, clubs can lose a maximum of £105m over a three-season period, or £35m per campaign, before facing sanctions.

Clubs that breach those limits are at risk of a fine or a points deduction.

Everton received an immediate 10-point deduction in November after an independent commission found the club's losses to 2021-22 amounted to £124.5m.

The punishment is the biggest sporting sanction in the Premier League's history. Everton's appeal is due to be heard before the end of this season.

Everton

Mike Richards, The Unholy Trinity Everton Podcast

The club are currently an absolute mess. With liquid cash unavailable and us living month-to-month solely due to our prospective new owners loans, the landscape appears to be bleak and hugely unsustainable.

We rightly trust custodians of our club to protect it. As Evertonians, we have been let down in that respect on the grandest of scales.

Farhad Moshiri’s legacy always promised to be the eye-popping spectacle that is Bramley Moore. Instead, both he and various other high-standing operators within the club will be long remembered and not quickly forgotten as those who have taken us to the brink.

The current referral to an independent commission is evidence once again, of the gross mismanagement of our great football club.

As a fan, I feel nothing but immense sadness and pent up anger. Our club mean everything to us. Unfortunately, we will once again be the ones who suffer for the actions of others.

Simon Stone
BBC Sport

These new Premier League cases have to be heard by 8 April, although given that is a Monday, they are likely to be concluded the previous week.

But Everton’s case can’t be heard until their appeal against a 10-point deduction by a previous commission has been determined. That is likely to be the end of February or beginning of March.

On 8 April, there will still be six full Premier League match rounds to play, with the possibility of some re-arranged games, meaning it’s highly likely the relegation places will not have been decided.

So any decision that ends in a points deduction is virtually certain to be subject to an appeal, even as a pre-emptive strike by the clubs. And that brings the potential for chaos as there is no guarantee any appeal would be heard before the final games of the campaign on 19 May.

Those final day fixtures… Burnley v Forest and Arsenal v Everton.

In terms of actually playing matches, that is when the season ends. But in terms of regulation, the 2023-24 season remains ‘live’ until the annual general meeting in June when the relegated clubs transfer their certificates. It is this point at which everything has to be determined.

Image source, BBC Sport

Everton

Mike Richards, The Unholy Trinity Everton Podcast

Hello darkness my old friend.

Being a football fan was always a slightly draining experience. Going through a range of emotions throughout a season was what we lived for. It was what we fed off.

Having to be a financial expert and spend countless hours trying to fathom how our club isn’t “compliant” within the draconian Premier League profit and sustainability framework shouldn’t be something we need to concern ourselves with.

Throw in VAR and it’s lengthy decision-making process and you’ve got a sport that has lost its way and is alienating fans.

Everton fans, while trying to navigate one battle, now have a second one to process.

BBC Sport has a dedicated Everton page packed with news, analysis and fan views - get it here

The Telegraph's Luke Edwards has been questioning whether or not the current rules are "fair" on the Transfer Gossip Daily podcast:

"I think the rules are the big talking point of this window. We need to ask ourselves, is it really fair? Are we handcuffing clubs now, who aren't going to go bankrupt and have got owners who can cover these debts quite comfortably?

“The clubs that are really trapped by it and are being really punished by it are the upwardly mobile clubs like Newcastle and Aston Villa.

"Everton spent loads of money trying to close that gap on the top four, that was what the initial plan was. They wasted a load of money - they did - but is it fair that they get punished twice in the same season for breaching profit and sustainability rules?

"You've got two clubs who have just tried to get better, in Nottingham Forest and Everton, who are now going to fall foul of these rules. They are going to defend themselves and deny any wrongdoing again, but they are facing a points penalty.”

Listen to the full episode on BBC Sounds.

Everton

Everton statement:

Everton Football Club acknowledges the Premier League’s decision to refer a breach of Profit & Sustainability rules (PSR) for the assessment period ending with the 2022/23 season to an independent Premier League commission.

This relates to a period which covers seasons 2019/20, 2020/21, 2021/22 and 2022/23. It therefore includes financial periods (2019/20, 2020/21 and 2021/22) for which the Club has already received a 10-point sanction. The Club is currently appealing that sanction.

The Premier League does not have guidelines which prevent a Club being sanctioned for alleged breaches in financial periods which have already been subject to punishment, unlike other governing bodies, including the EFL. As a result - and because of the Premier League’s new commitment to deal with such matters “in-season” - the Club is in a position where it has had no option but to submit a PSR calculation which remains subject to change, pending the outcome of the appeal.

The Club must now defend another Premier League complaint which includes the very same financial periods for which it has already been sanctioned, before that appeal has even been heard. The Club takes the view that this results from a clear deficiency in the Premier League’s rules.

Everton can assure its fans that it will continue to defend its position during the ongoing appeal and, should it be required to do so, at any future commission – and that the impact on supporters will be reflected as part of that process.

Premier League

Everton FC and Nottingham Forest FC have each confirmed to the Premier League that they are in breach of the League’s Profitability and Sustainability Rules (PSR). This is as a result of sustaining losses above the permitted thresholds for the assessment period ending Season 2022/23.

In accordance with Premier League Rules, both cases have now been referred to the chair of the Judicial Panel, who will appoint separate Commissions to determine the appropriate sanction.

Commissions are independent of the Premier League and member clubs. The proceedings are heard in private with the Commissions’ final decisions made public on the Premier League’s website. The League will make no further comment until that time.

We are still awaiting an official Premier League statement, but Nottingham Forest posted a statement saying they have "today been charged with a breach of the league's Profitability and Sustainability Rules" on the club's website before deleting it.

Stay with us for updates.

Everton and Nottingham Forest have been charged by the Premier League for breaches of the league's Profitability and Sustainability rules.

You can get in touch with your thoughts via #BBCFootball on X, WhatsApp on 0331231826, or by texting 81111 (UK only - texts will be charged at your standard message rate).

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Nottingham Forest

Nottingham Forest statement:

Nottingham Forest acknowledges the statement from the Premier League confirming that the club has today been charged with a breach of the league’s Profitability and Sustainability Rules.

The club intends to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution.

Everton and Nottingham Forest have been charged by the Premier League for allegedly breaking financial rules.

Both clubs have been referred to an independent commission for alleged breaches of profit and sustainability rules.

Image source, BBC Sport

Manchester United goalkeeper Andre Onana has linked up with the Cameroon squad ahead of the start of their Africa Cup of Nations opener with Guinea.

Onana left Manchester immediately after yesterday’s 2-2 draw with Tottenham.

His journey to the Ivory Coast was disrupted by inclement weather that meant he had to land in the capital Abidjan rather than Yamoussoukro, where the match is being played over 200km away.

It is not anticipated Onana will start this afternoon’s match.

Image source, Getty Images

It is day three of the Africa Cup of Nations, where Group C and Group D get underway in it the competition in Ivory Coast.

In Group C, Senegal started their campaign with a 3-0 win over Guinea. Pape Gueye's early goal gave them a lead before Gambia were reduced to 10 men after Ebou Adams was sent off in the first half. Lamine Camara scored twice in the second half to secure victory.

Today's other game Group C match sees Cameroon face Guinea.

There is also one match in Group D, where Algeria face Angola.

BBC will be showing 10 live matches from AFCON, including two quarter-finals and both semi-finals, with Thursday's Group B clash between Egypt and Ghana among those.

There will also be highlights of every match on the BBC Sport website.

Monday's AFCON fixtures:

Senegal 3-0 Gambia (full-time)

Cameroon v Guinea (17:00 GMT)

Algeria v Angola (20:00 GMT)

Image source, Getty Images

Liverpool are reportedly willing to sell 24-year-old Republic of Ireland goalkeeper Caoimhin Kelleher for £20m this summer and according to the Mirror, external, have identified Sunderland's 23-year-old former England Under-21 international Anthony Patterson as his replacement.

Want more transfer news? Read Monday's full gossip column

Image source, Getty Images

Wolves

Gary O'Neil has described the prospect of his Wolverhampton Wanderers side facing West Bromwich Albion as a motivation, not a distraction.

Wolves face Brentford in a third round replay in the FA Cup, with the winner heading to Wolves' arch-rivals West Brom in the fourth round.

"They’ll know that West Brom is a big game for supporters but we have a clear focus on Brentford for now."

BBC Sport has a dedicated Wolves page packed with news, analysis and fan views - get it here

Image source, Getty Images

Wolves

Some team news from Wolverhampton Wanderers ahead of their FA Cup third round replay against Brentford.

Manager Gary O'Neil has said Nathan Fraser is in contention for Tuesday's game, which is a "big plus" in the absence of Hwang Hee-chan.

Hwang is currently at the Asian Cup with South Korea but did not feature in their 3-1 win over Bahrain earlier today.

The 18-year-old forward has played twice for the first-team this season in the Carabao Cup, scoring once.

Image source, Getty Images

Luton Town

Luton Town manager Rob Edwards has said while he can make changes for Tuesday's FA Cup fourth tie against League One side Bolton Wanderers, he will pick a side capable of winning the tie.

"We have the opportunity to [make changes], but we will select a side capable of winning the game and one which will go into the game with the right mentality," said Edwards.

"But it doesn’t matter what team I pick, we need the right mentality to be on it."

BBC Sport has a dedicated Luton page packed with news, analysis and fan views - get it here

Image source, Getty Images

Luton Town

Luton manager Rob Edwards says his side must not lose focus in Tuesday's FA Cup replay at League One Bolton Wanderers.

"It's easy to get up for Premier League games, we've got to make sure our mentality, focus and attitude is right for cup games as well," he told a pre-match news conference.

"Let's go and do that. It's a game that we're looking forward to."

Edwards revealed last week that midfielder Ross Barkley's contract does not expire at the end of this season, but he wouldn't shed any more light on the length of his deal.

He added: "It's more than one year, it's less than four. Have a look around there somewhere!"