The Premier League has officially announced that Nottingham Forest has received a points deduction for infringing financial regulations.
In January, the Reds were accused of violating the Premier League’s Profitability and Sustainability Rules (PSR). Their defense against this charge was presented before an independent commission on March 7 and 8. The outcome of this hearing has now been disclosed.
Forest have been docked four points. It means they drop to 18th in the table with nine games remaining, having drawn 1-1 with Luton Town on Saturday in their final match before the international break.
Forest have been docked four points. It means they drop to 18th in the table with nine games remaining, having drawn 1-1 with Luton Town on Saturday in their final match before the international break.
“Nottingham Forest was referred to an independent Commission on 15 January, following an admission by the club that it had breached the relevant PSR threshold of £61 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 Commission found that the club had demonstrated “exceptional cooperation” in its dealings with the Premier League throughout the process.
“Commissions are independent of the Premier League and member clubs. The members of the Commission were appointed by the independent Chair of the Premier League Judicial Panel.”
The rules state Premier League clubs are only allowed to make a maximum loss of £105 million across a rolling three-year period, or £35m each season. For promoted teams that is reduced, meaning Forest were restricted to losses of £61m for the last three campaigns – £13m for the two seasons in the Championship prior to promotion, plus £35m last season.
Earlier this season, Everton were deducted 10 points for a PSR breach. They appealed that verdict and their penalty was reduced to six points, although they are still facing a second charge.
“Commissions are independent of the Premier League and member clubs. The members of the Commission were appointed by the independent Chair of the Premier League Judicial Panel.”
According to regulations, Premier League clubs are permitted a maximum cumulative loss of £105 million over three years, or £35 million per season. This limit is adjusted for promoted teams, such as Forest, who were constrained to a total loss of £61 million over the last three seasons—£13 million for their two Championship seasons preceding promotion, in addition to £35 million for the most recent season.
