CHELSEA and Manchester City face the threat of RELEGATION, according to a former financial advisor to the Etihad club.
Everton were slapped with a shock ten-point deduction for a single breach of the Premier League’s profit and sustainability Financial Fair Play rules.
The TimesManchester City are fighting back against 115 charges of breaching FFP Premier League rules[/caption]
ReutersChelsea are also at risk of a major punishment for possible FFP breaches[/caption]
The Toffees are the first team to be docked points for breaking FFP regulations in the Premier League.
And now it is understood both Chelsea and City could be in serious trouble.
City were hit with a mammoth 115 charges of FFP breaches by the Premier League last season.
The club continue to protest their innocence and are launching a major legal defence case to fight the Premier League.
Chelsea, meanwhile, are under the microscope for payments related to former owner Roman Abramovich.
And now Stefan Borson, a legal expert, believes both clubs could be booted out of the top flight.
“But reinforces that sanctions against City [if proven] and now Chelsea [if charged and admitted on the off-books payments] will be potentially relegation inducing.
“One thing is for sure, given the scale of this sporting sanction, Chelsea’s calculus (in my opinion) that they could breach Premier League profit and sustainability and just take a fine as a cost of doing business, must be in urgent and immediate reconsideration.
“The January window may be interesting. Even in the best case, they can no longer rely on being able to convince an Independent Commission to accept their Covid and Sanctions allowances as exceptional adjustments (to the extent that was the plan).”
Manchester City were subject to a four-year investigation looking into their finances from 2009 to 2018 and were also charged for their lack of cooperation.
Premier League lawyers believe City refused to disclose the true source of their revenues by claiming they were from sponsors against the backdrop of the club’s Abu Dhabi owners.
GettySean Dyche’s Everton were the first Premier League team to be docked points for FFP breaches[/caption]
City are also accused of paying a significant portion of ex-manager Roberto Mancini’s salary through an Abu Dhabi shell company and hiding that.
Chelsea, meanwhile, were fined £8.6million by Uefa for FFP breaches during the Abramovich reign and the Premier League are still examining the 2012 to 2019 period to see if they broke league rules.
But this week news emerged that further punishment could be in store for the Blues after leaked documents appeared to reveal the Russian billionaire broke rules.
It is suggested off-the-books funds from a third-party hidden money trail could land the West Londoners in hot water.
Although if found guilty, this would more likely to land Chelsea with a fine rather than a points deduction as the payments in question are not related to FFP regulations.
Chelsea have been on a bonkers spending spree that has seen more than £1billion splashed on new transfers in just three windows since Todd Boehly bought the club last year.
SunSport’s chief sports reporter Martin Lipton told talkSPORT Chelsea and Manchester City will be “sweating profusely” following Everton’s points deduction.
He said: “There are 115 charges against City being denied and they claim they have a solid case.
“Chelsea have opened their books and admitted their breaches.
“With Chelsea, lots of the allegations come before FFP rules came in.
“The obvious expectation will be a points deduction but it will likely be relegation for City if they are found guilty.
“City have extremely adept lawyers but one lost in the Supreme Court this week.”
Everton received the groundbreaking punishment after suffering £124.5m losses over the three years ending 2021-22, exceeding the £105m limit.
Their ten-point deduction drops Sean Dyche’s side to 19th in the Premier League, level on four points with bottom-side Burnley and five adrift of safety.
Only two clubs in Premier League history have previously been docked points.
Middlesbrough saw three points deducted in 1996-97 for failing to fulfil a fixture against Blackburn.
In March 2010, Portsmouth had nine points stripped for entering administration.
Both Middlesbrough and Portsmouth were relegated following their respective points punishments.