FOREST SLUMP

Nottingham hit by points deduction for financial breach, drop into bottom three

We believe the cooperation the club has shown during this process, which was confirmed and recorded in the commission’s decision, was not reciprocated by the Premier League. NOTTINGHAM FOREST

NOTTINGHAM Forest were docked four points for breaching Premier League financial rules on Monday, dumping them in the relegation zone.

The Premier League, in a statement, said Forest admitted to breaching the profitability and sustainability rules (PSR) threshold of £61 million by £34.5 million.

However, Forest said in a statement that they were “extremely disappointed” by the ruling and “dismayed by the tone” of the Premier League’s argument.

“We believe the cooperation the club has shown during this process, which was confirmed and recorded in the commission’s decision, was not reciprocated by the Premier League.”

The two-time European champions are the second top-flight team to be penalised for PSR breaches this season after Everton were hit with a 10-point penalty in November, which was reduced to six on appeal.

Everton are still waiting to see if they will be hit with another penalty on a second charge.

Forest’s punishment means they drop into the bottom three, one point behind Luton and four adrift of Everton.

Premier League clubs are usually allowed maximum losses of £105 million over a three-year assessment period, but this is reduced by £22 million per season for any seasons within the period spent in the Championship.

Forest were promoted to the Premier League in May 2022, meaning two seasons of their three-year assessment period were as a Championship club.

They had been absent from the English top-flight for the previous 23 years.

But the decision to sign a remarkable 29 players last season, with a reported spending of more than £150 million, has backfired.

Forest’s defence centred around the fact they sold Brennan Johnson to Tottenham for a £47.5 million just over two months after the end of the accounting period in June 2023.

The club argued they achieved a higher fee for the Welsh international by not selling before June 30.

However, an independent commission found that Forest had to be punished to “maintain the integrity” of the league.

The commission said Forest ignored a warning from its finance director ahead of the 2023 January transfer window about breaching PSR and added more players to their squad rather than stripping back.

Forest can still appeal the punishment, and the Premier League is at risk of an embarrassing situation whereby relegation is decided in the courts after the end of the season.

The English top-flight previously said the process should “conclude no later than and if possible some time before May 24”, which is five days after the final weekend of the season.