The English Premier League has sanctioned Nottingham Forest, with a deduction of four points due to breaches in financial regulations, announced on Monday.
This ruling plunges the club into the relegation zone.
The Premier League disclosed in a formal statement that Forest admitted to contravening the Profitability and Sustainability Rules (PSR), surpassing the £61 million ($77.5 million) threshold by £34.5 million.
This development marks the second occurrence this season of a top-tier team facing penalties for PSR infringements, following Everton’s deduction of 10 points in November, subsequently reduced to six after an appeal.
While Everton awaits a verdict on another potential points penalty for a separate charge, their fate hangs in the balance.
With Forest’s penalty, they now find themselves in the bottom three, trailing Luton by one point and Everton by four.
Typically, clubs are permitted maximum losses of £105 million over a three-year assessment period, with allowances of £22 million reduction per season for any years spent in the Championship within that timeframe.
Since their promotion to the Premier League in May 2022, Forest has spent two out of three assessment period seasons in the Championship.
There’s a possibility of Forest appealing the sanction, with the Premier League indicating that the process ideally concludes by or before May 24, just five days post the conclusion of the top-flight season.
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