Forest fall into EPL drop zone after 4-point deduction for financial breaches
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Nottingham Forest dropped into the relegation zone Monday after being deducted four points for breaching the Premier League's profitability and sustainability rules (PSR).
Forest are now in 18th place, one point away from safety, with nine games remaining in the season.
The club, which is "extremely disappointed" with the decision, has seven days to decide whether to appeal.
"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," Forest said in a statement.
| Position | Team | GP | GD | Pts |
|---|---|---|---|---|
| 15 | Brentford | 29 | -13 | 26 |
| 16 | Everton | 28 | -10 | 25 |
| 17 | Luton Town | 29 | -18 | 22 |
| 18 | Nottingham Forest | 29 | -16 | 21 |
| 19 | Burnley | 29 | -34 | 17 |
| 20 | Sheffield United | 28 | -50 | 14 |
Forest are the second team after Everton to have lost points this season over financial breaches. The Toffees were initially docked 10 points for exceeding the Premier League's £105-million limit on losses over a three-year period. That penalty was later reduced to six points following an appeal.
Manchester City also await a verdict after being charged with an unprecedented 115 financial breaches in February 2023.
Like Everton, Forest admitted they had violated the rules. The charges stem from the three-year period ending in the 2022-23 season, which was their first in the Premier League in 23 years. The club spent the previous two seasons in the second-tier Championship.
Forest were limited to £61 million in losses over that assessment period because they were in the Championship for two thirds of it. They ended up racking up £95.5 million in losses during that time as they beefed up their squad for Premier League survival.
Forest said they were "surprised" the Premier League "gave no consideration" to the fact those losses occurred after they were promoted.
"In circumstances where this approach is followed by future PSR commissions, it would make it extremely difficult, if not impossible, for newly promoted clubs without parachute payments to compete, thus undermining the integrity and competitiveness of the Premier League," the club added.
The independent commission that reviewed the case initially considered a six-point penalty but reduced it by two as a result of the club's early plea and cooperation.
The East Midlands outfit had hoped the sale of homegrown talent Brennan Johnson to Tottenham Hotspur in September would convince the Premier League of its plan for sustainability, according to The Athletic's David Ornstein and Paul Taylor.
However, because the sale occurred after the June 30 deadline for financial reporting, Forest couldn't book the estimated £47.5-million fee they received from Spurs in the period in which they exceeded their limit.