Profitability and Sustainability Rules — Standard Directions

Michael Kenrick
06/12/2023

It’s been surprising to see a number of fans claiming that Everton are obviously guilty of having breached the Premier League’s Profitability and Sustainability Rules… well, perhaps not so surprising since Everton themselves bizarrely backtracked and pleaded guilty after insisting they had done nothing wrong and would mount a robust defence knowing they had abided by all the P&S rules.   

Well, let’s take a closer look at this thorny business of trying to abide by the Premier League’s rules… I mean, we can all safely assume that at least the Premier League themselves will do that, surely? 

One thing is abundantly clear to me: the entirely arbitrary nature of the proceedings, the decision-making, the rejection of mitigation, the 10-point deduction itself. 

But there’s another very important arbitrary decision — presumably made soon after the independent commission was initially set up — that they would simply reject all the rules setting the required timeline for the process itself, and this one has hardly been raised at all, apparently just accepted by all parties. 

What I’m referring to here is something I missed completely in my reading of the PSR stuff in Section E and the Commission stuff in Section W of the Premier League Handbook. There is a whole additional set of Premier League P&S rules — called Standard Directions — that appear to have been simply tossed out of the window. 

Rule 5. These Standard Directions apply in respect of any PSR Complaint.

These rules require above all that the process is completed by 1 June after the club’s accounts (and PSR calculation) have been submitted. Everton submitted in March 2023 so, by the Premier League’s own rules, the process should have been complete by 1 June 2023.

Rule 1. These Standard Directions have been agreed by Clubs to ensure that any complaint regarding a breach of the Profitability and Sustainability Rules can be resolved, including any appeal to an Appeal Board, as expeditiously as possible and, absent exceptional circumstances, prior to the 1 June following the submission of the relevant Club’s Annual Accounts (the “Backstop Date”).

Rule 5. (Continued) The League and Clubs recognise and agree that, given the possibility of the imposition of a sporting sanction in the form of a points deduction … and the desirability (so as to protect the interests of other Clubs) of any such points deduction taking effect in the Season in which the relevant Club’s Annual Accounts are submitted, it is important that clarity is reached regarding any such sanction prior to the subsequent Annual General Meeting. This provides certainty for the League, its Member Clubs and other stakeholders as to the membership of the League in the subsequent Season. 

If that’s not clear enough, it’s restated in even stronger language a number of times within the Standard Directions, for example:

Rule15. Any PSR Complaint referred to a Commission by the Board must be 
determined by the Commission at a single hearing, at which the parties shall make submissions and adduce evidence both about breach and to sanction, to be listed for between one and five days, so as to conclude the Commission proceedings (by the Commission’s decision, together with written reasons) within 12 weeks (84 days) of the serving of the PSR Complaint on the Respondents by the Board pursuant to Rules W.23 to W.25, within which period the procedural steps below must take place.

The Standard Directions do allow for the procedural steps to be varied (Rule 6):

However, such variation of the procedural steps within the Standard Directions will only be permitted where both: 
a. there are specific circumstances warranting the variation; and
b. in any event the variation does not defeat the purpose of these Standard Directions by endangering the possibility of concluding the Commission proceedings, and any subsequent appeal, by the Backstop Date.
 

The rest of the Standard Directions are very tight on setting time limits to each stage of the process, all of which as far as I can tell have been breached by the Premier League, who have simply tossed them out entirely. 

I can only conclude that Everton, rather than insisting that the Standard Directions be followed to the letter, in their own utter incompetence, have agreed to work with the Premier League and their own leisurely schedule.

Hell’s bells — even the very first step of this nonsense should have been used by the club to tell them exactly where to go:

Rule 8. Any PSR Complaint must be served by the Board on the Respondent … by no later than two weeks (14 days) following provision by the Club of its Annual Accounts.

Everton published their Annual Accounts for 2021-22 on 1 March 2023.

The PSR Complaint was served to Everton on 24 March 2023 — 23 days later, and obviously well beyond the 14 days allowed in the Premier League’s own rules. 

I rest my case.

Source:  Premier League Handbook, Appendix 1. Profitability and Sustainability Rules — Standard Directions

Update See below for possible explanation to the above

 


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