Nottingham Forest hit with four-point deduction for financial rule breaches

Nottingham Forest hit with four-point deduction for financial rule breaches

Nottingham Forest have been deducted four points for breaking Premier League financial rules.

The City Ground club admitted earlier this year to a breach of profit and sustainability rules (PSR), leading to them being referred to an independent commission to determine their punishment.

Subject to appeal, the points deduction drops Forest one point below Luton and into the relegation zone.

A statement from the club said: “Nottingham Forest is extremely disappointed with the decision of the Commission to impose a sanction on the Club of four points, to be applied with immediate effect.

“Notwithstanding our disappointment, we thank the Commission for agreeing to deal with this matter on an expedited basis. The Club considers it to be essential for the integrity of the league to have charges resolved in the season in which they are issued.

“We were extremely dismayed by the tone and content of the Premier League’s submissions before the Commission.

“After months of engagement with the Premier League, and exceptional cooperation throughout, this was unexpected and has harmed the trust and confidence we had in the Premier League. “

The charge relates to the three-year financial cycle completed at the end of the 2022-23 season, in which clubs are allowed to lose £105million.

Forest have spent £250m in signing 42 players since winning promotion to the top flight in the summer of 2022 with a squad largely made up of loan players and those about to become free agents.

Wales striker Brennan Johnson was sold to Tottenham at the end of last summer’s transfer window in a bid to make up the deficit in their accounts, but the deal going through on September 1 meant it ultimately did not apply to the financial cycle in question.

“There will be occasions when a player transfer cannot be completed in the first half of a transfer window and can only be completed at the end of that window,” the club said.

“This should not be a reason for the condemnation of a club. For this not to be recognised by the Commission or the Premier League should be a matter of extreme concern for all fans of our national game.”

Forest were found to be £34.5m in breach of the acceptable amount of losses. The Premier League had initially sought a sanction of eight points, but the club have instead been hit by a three-point deduction for the breach and three points for the size of the breach, with that penalty reduced by two points due to “mitigating factors”.

“That the Premier League sought a sanction of eight points as a starting point was utterly disproportionate when compared to the nine points that their own rules prescribe for insolvency,” Forest said.

Any appeal must be concluded by April 15 as the Premier League looks to ensure any question marks over points deductions are answered by the end of the campaign.

Everton, already handed a ten-point deduction which was reduced to six for PSR breaches, are facing another punishment imminently for still failing to adhere to financial rules.

The Premier League are also expected to rule on the 115 charges facing Manchester City, which they deny, at a later date with some reports suggesting an initial outcome could be reached next year.