Nottingham Forest points deduction: Loss of four points drops club into relegation zone

Nottingham Forest have been docked four points for breaching Premier League profit and sustainability rules.

An independent commission found Forest’s losses to 2022-23 breached the threshold of £61m by £34.5m.

The immediate loss of points means they drop below Luton Town into the Premier League’s relegation zone.

Forest are the second top-flight team to be penalised for PSR breaches after Everton lost 10 points in November, which was reduced to six on appeal.

Forest, who are likely to appeal against the ruling, had a hearing on 7-8 March.

Premier League clubs can lose £105m over three seasons – £35m per campaign – but Forest’s maximum loss was only permitted to be £61m because they spent two years of the assessment period in the Championship.

The commission found Forest demonstrated “exceptional cooperation” with the Premier League during the process.

The league’s rules state any appeals process should “conclude no later than and if possible some time before 24 May” – five days after the season finishes.

Forest were charged in January and the Premier League said in a statement that both they and Everton “confirmed that they are in breach of the league’s profitability and sustainability rules”.

Forest, who hired leading sports lawyer Nick de Marco to defend them, are thought to have based their case around the sale of Brennan Johnson to Tottenham Hotspur in September.

The move, worth more than £45m, took place after the accounting deadline but Forest argue selling Johnson at a later date allowed them to earn a higher fee than if they had sold him by 30 June.

Forest were promoted in May 2022 and signed a British-record 22 new players that summer, reportedly spending £150m.

After the charge two months ago, Forest said they were “confident of a speedy and fair resolution”.

Everton are waiting on a potential second punishment, relating to the assessment period ending with their 2022-23 accounts.

Manchester City were also referred to an independent commission in February 2023 after more than 100 alleged rule breaches.

Source:norvanreports