Everton supporters have been asking questions after it was revealed that Chelsea lost £355m in the 2024/25 campaign.
The Toffees were docked ten points in the 2023/24 campaign for breaking Profit and Sustainability Rules (PSR) in the three years leading up to the 2021/22 season, which was later reduced to six points after an appeal. Clubs are only allowed a maximum loss of £105m across a three-year period.
Everton were then docked another two points in April 2024 for another breach of the financial rules, so fans are quite rightly up in arms at the fact Chelsea have gone unpunished despite losing £355m. It is the largest deficit ever recorded by an English club.
So, how have those over in west London managed to avoid a points deduction when Everton did not? Adam Williams – Head of Football Finance and Governance Content for GRV Media – has shared the lowdown with Everton News.
Everton’s commercial income fell off a cliff after Alisher Usmanov’s exit
What else can Everton do at the Hill Dickinson Stadium to get back to £76m and beyond?
Everton News - Discussion Points creative - Commercial income
Everton News – Discussion Points creative – Commercial income Credit: Mikhail Svetlov/Getty Images
Exclusive: Everton told “very smart legal” team at Chelsea helped them avoid punishment
Williams said: “There are plenty of teams who have recorded losses over £105m in a three-year PSR assessment window and not been adjudged by the Premier League to have breached the rules. There are a variety of reasons – often, when added back, allowable spending such as on infrastructure, the academy or the women’s team gets them under the limit.
“But the Premier League only really started looking at properly enforcing the rules around 2020, when they were threatened with the prospect of the Independent Football Regulator stepping in and doing it for them. Everton were the guinea pigs here, so I have some sympathy for them in that sense.
“But equally, they did lose almost £700m between 2018 and 2024. That’s not sustainable, as the fact that Farhad Moshiri had to sell that club itself proved. I think the Premier League does need to have a system in place that discourages that. Clubs can’t just have carte blanche, otherwise some will go under.
MORE EVERTON STORIES
“I think the new SCR rules are a much better system, however, and Everton have freedom to invest in the future under them. They aren’t perfect, but they give Everton the chance to build over the long term – and they suit clubs with high revenues but not necessarily high margins, and Everton fall into that category too.
“With regards to Chelsea, they have actively broken the PSR system. They are a basket case financially, but they have a very smart legal and compliance team. Once they figured out that you could sell property assets to themselves and book an artificial profit, it effectively meant that no club in the Premier League could ever be punished under PSR again because everyone had a get-out-of-jail-free card they could pull at the last minute.
“Everton, in theory, could have figured that out sooner than Chelsea did, broken PSR earlier and completely dodged the points deductions. That would have needed further investment from Moshiri, but it was entirely possible. And they would have done it too – indeed, The Friedkin Group has sold the women’s team to itself for this very same reason: to give themselves a buffer to avoid PSR sanctions, as well as to attract further investment in the women’s team. Under SCR (Squad Cost Ratio) they won’t be able to do this, but it probably means Everton dodged yet another breach, or at least the risk of one. So they aren’t holier-than-thou in that respect.
“There’s no conspiracy in terms of why the Premier League charged Everton but not Chelsea. It’s a question of incompetence in terms of how their legal team drafted the rules, not duplicity or favouring the big clubs. The Friedkins themselves appreciate this and they have made considerable efforts to mend the relationship with the Premier League’s offices since they took over.”
On a slightly separate note, Everton are expected to break the £100m barrier after it was announced that the Hill Dickinson Stadium will host the Nations Championship match between Fiji and England in July.
Events of this nature – which were not possible at Goodison Park – are sure to help the Toffees stay financially healthy for years to come.
What does SCR mean?
SCR stands for Squad Cost Ratio, and it will be replacing the PSR system from the 2026/27 campaign onwards.
The official Premier League website defines SCR as a ‘financial regulation that limits Premier League clubs’ on-pitch spending to 85% of their football-related revenue and net profit/loss from player sales’.
It has effectively been implemented to give Premier League clubs more of a chance to build a project without having to panic – or to ‘aspire to greater success’ as the league’s official website states.
Is Moyes still underappreciated by Everton fans for the job he’s doing? 🤔
Everton manager David Moyes.
It falls in line with the rules used by UEFA, allowing clubs to cope with unexpected qualification for European football – or an unexpected failure to qualify – far easier than they would have under the PSR system.
Join Our Newsletter
Receive a digest of our best Everton content each week direct to your mailbox