Nottingham Forest has incurred a four-point deduction for violating the Premier League’s Profit and Sustainability Rules (PSR), as announced by the league on Monday.
Consequently, the team’s points tally for the season drops from 25 to 21 after 29 games, pushing them into the relegation zone and positioning them one point behind Luton Town in 18th place.
This marks the second instance of a points deduction in the Premier League this season, following Everton’s initial 10-point deduction (later reduced to six upon appeal) for breaching PSR regulations. Everton also faces additional penalties for another violation within the same timeframe as Nottingham Forest.
“The independent commission determined the sanction following a two-day hearing this month, at which the club had the opportunity to detail a range of mitigating factors. The Commission found that the club had demonstrated ‘exceptional cooperation’ in its dealings with the Premier League throughout the process,” the Premier League said in a statement.
The independent commission’s report said Forest’s charge warranted a six-point penalty but was reduced to four points after mitigation, which included an early plea and meaningful cooperation with the investigation.
Forest said they were “extremely disappointed” with the decision in a club statement published later on Monday.
“We were extremely dismayed by the tone and content of the Premier League’s submissions before the Commission,” it said.
“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.
“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.”
According to Premier League regulations, clubs are not allowed to incur losses exceeding £105 million ($133.6m) over a three-year span.
However, Nottingham Forest’s situation differs due to their participation in the second-tier championship until 2022. In that league, clubs are permitted a maximum loss of £39m ($49.6m) across three seasons or £13m ($16.6m) per season. Thus, Forest’s allowable losses over the past three campaigns total £61m ($77.7m).
Forest faced charges in January for violating these regulations during the 2022-23 season.
Upon their promotion ahead of the 2022-23 season, Forest made history by completing 21 separate transfers, setting a new record for the most transfers by a Premier League club in a single close-season window.