Stefan Borson Predicts That Chelsea And Man City May be Relegated From the Premier League if They Are Found to Have Violated FFP Regulations, Following Everton's 10-Point Penalty

According to a former financial advisor to the champions, Manchester City and Chelsea are now at risk of relegation from the Premier League following Everton's 10-point deduction. This deduction has left Everton in a precarious position, second from the bottom of the table, and they are planning to appeal the decision.

Stefan Borson, a former financial advisor to Manchester City, has raised concerns about the potential relegation of both Manchester City and Chelsea. He points to Manchester City's alleged 115 financial breaches and leaked files revealing questionable payments during Roman Abramovich's ownership of Chelsea. 

Borson suggests that Chelsea's previous strategy of breaching Profit and Sustainability rules and accepting fines as a cost of doing business may no longer be viable given the severity of the sporting sanction.

Borson also mentions that the upcoming January transfer window could be interesting for both clubs. He suggests that even in the best-case scenario, they can no longer rely on convincing an Independent Commission to accept their Covid and Sanctions allowances as exceptional adjustments.

This situation stems from Manchester City being charged with 115 breaches of the Premier League's financial rules earlier this year. Borson had previously mentioned the possibility of relegation as a potential sanction if they were found guilty. 

In an effort to establish a precedent, the Premier League advocated for a significant deduction of points following the club's violation of financial regulations during the 2021-22 season. Everton's staggering financial losses of nearly £372 million over a three-year period have further emphasized the need for a strong response.

Recent reports have also indicated that Chelsea will face scrutiny from the Premier League in relation to a succession of payments linked to the ex-owner, Abramovich.

According to The Guardian, Abramovich, the Russian billionaire who was the owner of the club for almost two decades until he was sanctioned by the British Government in the previous year, allegedly utilized offshore firms to carry out payments for the club.

The Premier League is currently conducting an investigation into the Blues following the discovery of 'potentially incomplete financial reporting' associated with Abramovich's tenure. This revelation came to light during the due diligence process undertaken by the new owners as part of the takeover.

The spokesperson for Chelsea stated that the club's current ownership was not involved in the alleged incidents. The allegations are founded on undisclosed documents that have not been presented to the club, and they do not pertain to any current member of the club.

During the Covid pandemic, the Premier League relaxed financial regulations, impacting all clubs who faced challenges such as reduced gate receipts and limited commercial opportunities. However, Everton experienced a more severe impact compared to other clubs, and they also highlight the Russian invasion of Ukraine as an additional factor that contributed to their difficulties.

The financial situation was directly affected by the suspension of commercial agreements, as well as the failure of a significant naming rights' deal on Bramley Moore Dock with Russian oligarch Alisher Usmanov's USM. This failure was a result of sanctions imposed.

Everton maintains that they have upheld a policy of openness and transparency throughout the entire process. Since 2021, they have been bound by a mandated agreement with the League, which required them to adhere to stringent financial regulations. Essentially, this agreement imposed a salary cap, necessitating player sales in order to make new acquisitions.

Everton's commitment to financial responsibility has been clearly demonstrated in the past four transfer windows, as evidenced by their net spend of -£28 million. This figure surpasses that of most other Premier League clubs, highlighting the Toffees' dedication to complying with regulations.