LONDON – Nottingham Forest have become the second English Premier League club to be deducted points for breaching profitability and sustainability rules (PSR) after being docked four points over their finances on March 18.
A Premier League statement read: “An independent commission has applied an immediate four-point deduction to Nottingham Forest for a breach of the Premier League’s Profitability and Sustainability Rules (PSRs) for the period ending season 2022-23.
“Nottingham Forest were referred to an independent commission on Jan 15, following an admission by the club that it had breached the relevant PSR threshold of £61million (S$104 million) by £34.5 million. The threshold was lower than £105 million as the club spent two seasons of the assessment period in the EFL Championship.
“The case was heard in accordance with new Premier League rules, which provide an expedited timetable for PSR cases to be resolved in the same season the complaint is issued.
“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 two-time European champions could appeal the punishment, with the Premier League previously saying the process should “conclude no later than and if possible some time before 24 May”, which is five days after the final round of top-flight fixtures this season.
The Premier League charged Forest and Everton with breaches of the league’s financial fair play rules in January.
Forest’s points deduction plunged them into the relegation zone. Nuno Espirito Santo’s side, previously in 17th place on 25 points, now have 21 points from 29 games. That leaves them in 18th place, one point behind Luton Town, who climbed out of the bottom three.
Everton were deducted 10 points in November for breaches in the 2021-22 season. The penalty was reduced to six on appeal.
The Goodison Park club are still waiting to discover if they will be hit with another points penalty relating to their second charge.
Forest, who have not previously run afoul of the regulations, become the third club to be charged by the Premier League, following Everton and champions Manchester City.
“The club intend to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution,” said Forest in January.
The club were in the second-tier Championship until 2022, when clubs are permitted a maximum loss of £39 million over three seasons, or £13 million per season, meaning their permissible losses over the last three campaigns would add up to £61 million.
Upon their promotion ahead of the 2022-23 season, Forest broke the record for most transfers (21) by a Premier League club in the close-season window.
In 2023, City were also referred to an independent commission over more than 100 alleged breaches of finance rules since the club were acquired by the Abu Dhabi-based City Football Group in 2008. No verdict has yet been reached.
Clubs in England’s top flight have been docked points before, with Middlesbrough having three points deducted in 1997 when they failed to fulfil a fixture, while Portsmouth were given a nine-point penalty in 2010 when the financially-troubled club entered administration. REUTERS, AFP
