Chelsea and Manchester City could face relegation from the Premier League following Everton’s recent 10-point deduction for breaching Financial Fair Play regulations. 

Everton’s penalty, the heaviest ever imposed by the Premier League, has raised concerns that similar sanctions could be applied to City and Chelsea, both of whom are under investigation for potential FFP violations.

According to Daily Mail, Stefan Borson, a former financial advisor to Manchester City, believes that Everton’s punishment sets a precedent that could have severe consequences for City and Chelsea. 

“Without seeing the judgement/award -10 points for Everton feels harsh for a straightforward FFP [Financial Fair Play] breach to me.

‘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.

Borson added: ‘One thing is for sure, given the scale of this sporting sanction, Chelsea’s calculus [in my opinion] that they could breach PL P&S [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].”

Borson further suggests that Chelsea’s approach of accepting a fine as a cost of doing business in the event of an FFP breach is no longer viable given the severity of Everton’s penalty. 

He believes that Chelsea’s financial strategy will require urgent reconsideration and that the January transfer window could be significantly impacted.

Only two clubs in Premier League history have previously received points deductions. Middlesbrough were docked three points for failing to fulfill a fixture against Blackburn during the 1996/97 season, while Portsmouth were deducted nine points after going into administration in 2010. Both clubs were ultimately relegated.

Everton has expressed its intention to appeal the “harsh” sanction imposed upon them, maintaining that they have been transparent and cooperative throughout the investigation process. 

The club disputes the finding that they failed to act in good faith and believes that the severity of the punishment is disproportionate to the alleged offenses.