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Four Years Too Late NYT
Nottingham Forest have been hit with a four-point deduction after breaching the Premier League’s Profit and Sustainability rules.
The punishment sees Forest drop into the relegation zone as they now sit 18th in the Premier League table on 21 points, a point behind Luton in 17th. An appeal will likely follow.
The Premier League have claimed that the club exceeded their PSR threshold by as much as £34.5million in the pertinent period.
Forest were charged with breaching spending regulations in January 2024 alongside fellow Premier League side Everton, the Toffees receiving a 10-point deduction earlier in the season.
That penalty was reduced to six points later on but Forest have now suffered a similar fate at a crucial point in the campaign.
Nottingham Forest have been hit by a points deduction for breaching Premier League spending rules
Forest move into the relegation zone after picking up the penalty and drop behind Luton Town
Forest are now in the relegation zone below Luton following the four-point deduction
Forest published a statement on Monday outlining that they were ‘disappointed’ with the decision to hand out a points penalty, although they did indicate it was for the best of the league’s integrity to mete out punishment ‘in the same season in which they are issued’.
It added: ‘We were extremely dismayed by the tone and content of the Premier League’s submissions before the Commission.
‘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.
‘That the Premier League sought a sanction of eight points as a starting point was utterly disproportionate when compared to the nine points that their own rules prescribe for insolvency.
‘We were also surprised that the Premier League gave no consideration at all to the unique circumstances of the Club and its mitigation. 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 statement also pointed to deal to sell Brennan Johnson to Tottenham, which was thought to be a key part of their defence for breaching spending rules in the pertinent period.
As FFP calculations are made over a three-year period ending on June 30, the Johnson deal will count towards the reckoning for 2021-2024 rather than 2020-23 as it was completed on deadline day.
Clubs are permitted to make financial losses of £105m over a three-year period, with Forest reporting an annual loss of £45.6m in their last accounts.
Another complication comes as Forest were only a Premier League team for one of those three seasons; Championship club’s have losses capped at £13m per season, meaning their cap was in fact £61m.
Forest say they could have sold Johnson to Brentford in June for about £30m, which would have put them in a healthier financial state for the 2020-23 period, but nearly £20m out of pocket overall.
Nuno Espirito Santo’s side now face an uphill battle to remain in the Premier League for another year
The deduction leaves Forest at greater risk of relegation as they drop into the bottom three
For the club’s sustainability they argue that accepting nearly £50m for Johnson in August was better than accepting £30m earlier in the summer.
The statement continued: ‘Even after the Club had missed the PSR reporting deadline, it still took steps to ensure Brennan Johnson was sold before the end of the transfer window. That was a clear demonstration of our respect and support for PSR.
‘The Commission’s decision raises issues of concern for all aspirant clubs. The player transfer market is a highly specialised trading environment that cannot be compared to the sale of normal products and services.
‘There will be occasions when a player transfer cannot be completed in the first half of a transfer window and can only be completed at the end of that window. This should not be a reason for the condemnation of a club. For this not to be recognised by the Commission or the Premier League should be a matter of extreme concern for all fans of our national game.
‘Of wider concern for all aspirant clubs is the disturbing effect this decision will have on the operation of the player trading model. This is the only model by which clubs outside of the small group at the very top end of the Premier League can realistically advance up the football pyramid.’
Forest’s response to the penalty concluded by insinuation ‘the high levels of cooperation’ they had shown throughout the process were not ‘reciprocated’ by the league.
Prior to the announcement, Forest had sat just three points clear of Luton in 18th place, the Hatters earning a late 1-1 draw with Nuno Espirito Santo’s side on Saturday to stay within striking distance, though now they have leap-frogged Forest into 17th.
A hearing took place to decide what punishment the club would face on Thursday and Friday last week, ahead of Saturday’s game.
Nuno Espirito Santo’s side are now in 17th spot but the boss has claimed his side will continue to fight against relegation
Forest’s spending since returning to the English top-flight at the start of 2022-23 has been lavish in the extreme.
From that summer, as many as 42 players have arrived at the City Ground for more than £250million.
Asked about the impending verdict after Saturday’s clash with Luton, Espirito Santo said that the club would ‘keep on going and fighting’ in a bid to beat the drop.
The charges levelled against Manchester City in February for 115 alleged breaches is a case that remains ongoing.
