Nottingham Forest have failed in their appeal to have their four-point deduction for breaking financial rules in the 2022/23 season overturned.
The club were charged in January after breaching Profitability and Sustainability Rules (PSR) by £34.5m above their permitted threshold of £61m for the assessment period ending 2022/23.
Clubs are usually allowed a maximum loss of £105m over a three-year assessment period, although this is reduced by £22m per season for any seasons within the period spent in the Championship.
Forest were 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.
The outcome of their appeal means Forest remain in 17th position, just three points clear of the relegation zone with two games remaining.
Forest had sought a reduction because they felt the original commission should have taken the sale of Brennan Johnson to Tottenham – two months after the end of the financial year ending 2023 – into account as a mitigating factor.
They also felt the original commission had made a mistake by not wholly or partially suspending the sanction.
The remaining fixtures in this season’s Premier League relegation battle
A release published on the Premier League website read: “The club argued that the independent commission committed an error in not treating its sale of a high-profile player shortly after the assessment period as a mitigating factor, and that it committed a further error in electing not to suspend some or all of the points deduction it imposed.
“Each of these grounds was rejected by the appeal board, which found the independent commission was entitled to immediately impose the sanction it did. The four-point deduction will therefore remain in place.”
In rejecting the appeal, the independent commission concluded Forest left it too late to sell Johnson and said in its report that Forest owner Evangelos Marinakis only sanctioned Johnson’s sale on August 28 – less than a week before the transfer window closed.
Forest have decided not to comment following the appeal panel’s verdict.
‘Premier League delighted’ | What about Everton’s appeal?
Sky Sports News chief reporter Kaveh Solhekol:
“The Premier League will be delighted this issue has been dealt with before the final game of the season because everybody was worried these PSR cases involving Forest and Everton would not be resolved by the final day, but that has all been settled now.
“Forest were basing their appeal on Brennan Johnson’s sale. In the summer of 2023, Forest could have sold Johnson to Brentford for £35m and they would’ve been clear of PSR rules.
But they waited until September 1 to sell him to Spurs for £47.5m and they felt that was the right thing to do, but by doing that they couldn’t bank that money in the PSR accounts for that period because it ended at the end of June.
“They also argued elements of the punishment should have been suspended but the appeal commission decided not to accept any of these arguments.
Nottingham Forest were docked four points in March for breaching the Premier League’s financial rules
“I don’t think there will be any impact on Everton’s appeal over their two-point deduction. These appeals are heard by commissions made up of three different people so I don’t think it will have any effect.
“Everton and Forest, though, will feel incredibly hard done by because these rules are so controversial and the rules are on the way out because they’re going to be replaced for the 2025/26 season by new squad cost control rules.”
Saturday 11th May 5:00pm
Kick off 5:30pm
Nottingham Forest’s remaining fixtures
May 11: Chelsea (H) – Premier League, kick-off 5.30pm, live on Sky Sports
May 19: Burnley (H) – Premier League, kick-off 4pm
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