The Premier League is taking financial infractions very seriously.
Nottingham Forest’s four-point deduction for violating the profitability and sustainability rules (PSR) has sent them into the Premier League relegation zone.
The Premier League levied charges against Forest in January after the team disclosed losses that exceeded the maximum sum permitted for the three-year period that concluded with the 2022–2023 season. Everton and the club were both referred to an independent commission because it was claimed that both had committed the same offense.
After looking into the claims, the independent panel recommended that Forest be docked four points, which would drop them into the bottom three. After a 1-1 draw with Luton Town on Saturday, Nuno Espirito Santo’s team was three points clear of safety; however, they have since fallen behind their hosts and into 18th place.
According to a Premier League statement, Nottingham Forest FC has been immediately docked four points for violating the league’s Profitability and Sustainability Rules (PSRs) for the season that ends in 2022–2023. This decision was made by an independent commission.
On January 15, Nottingham Forest was referred to an independent Commission after the club acknowledged that it had overpaid by £34.5 million to exceed the relevant PSR threshold of £61 million. Due to the club’s two seasons in the EFL Championship during the assessment period, the threshold was less than £105 million. The Premier League Rules, which offer an accelerated timeline for PSR cases to be resolved in the same season the complaint is issued, were followed during the case hearing.
“The sanction was decided by the independent Commission after a two-day hearing this month during which the club presented a number of mitigating circumstances. According to the Commission, the club exhibited “exceptional cooperation” in all of its interactions with the Premier League.
While acknowledging the breach, Forest insisted that it was partially caused by their desire to obtain additional funding for Brennan Johnson. Early in the summer of last year, they received a bid of £30 million from Brentford, and accepting it would have probably kept them within PSR limits. However, they thought they could get more, so they sold the winger to Tottenham for £47.5 million, which was in September and therefore not shown in the accounts for the previous season.
After Everton was originally docked 10 points in November, they are now the second team this season to suffer a points deduction. That was lowered to six in February after an appeal, and Forest is anticipated to file a similar appeal.
A second point deduction is not out of the question for Everton, who are awaiting the outcome of their second charge regarding a breach that occurred during the same time as Forest. Leicester City, a championship team, may also lose points before the following season if they are promoted for exceeding the allotted amount.
Manchester City faces 115 charges of allegedly breaking competition laws between 2009 and 2018, and the matter is still under investigation. A resolution is unlikely to occur for some time due to the quantity and complexity of their charges, and the club vehemently denies any wrongdoing.
PSR restrictions have been frequently mentioned by Manchester United as a major impediment to the hiring that many supporters have been hoping for, especially in the most recent January windows. Since taking over as manager in 2022, Erik ten Hag has spent over £400 million, but during the last two mid-season windows, no money has been spent; the only additions to the team have been loan signings like Wout Weghorst and Marcel Sabitzer.
