Merseyside club lost £373m over three-year period, which exceeds league allowance

A number of Premier League clubs are conducting a “forensic analysis” of Everton FC’s accounts with a view to potentially suing the club for breaching financial regulations.
Everton recently published accounts showing that they lost £120 million in 2020-21.
This took their losses over a three-year period to £373 million, but Premier League rules state that clubs are only permitted to lose £105 million over a three-year period.
However, the Premier League allowed some flexibility in its financial sustainability rules die to disruption caused by the Covid-19 pandemic and, consequently, Everton claims it is complying with the league’s rules.
However, some Premier League clubs are sceptical and have not ruled out taking legal action.