Nottingham Forest to receive four point deduction over PSR breaches, drop into Premier League relegation zone

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Nottingham Forest have been plunged into the Premier League’s relegation zone after being handed a four point penalty for breaches of the league’s Profit and Sustainability Rules (PSR).

Having reported losses that exceeded the maximum permissable amount — £105 million in a three year cycle — Forest were reported to an independent commission in January, who concluded that there were insufficient mitigating circumstances to allow them to avoid a sanction that could yet have major ramifications on the table come the end of the season. The club have 14 days to decide whether they will launch an appeal.

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Forest have spent heavily since their promotion to the Premier League in the summer of 2022, recruiting 55 players on permanent or loan deals at a combined cost in excess of $320 million. A significant factor in their defense against PSR charges was their unwillingness to sell Brennan Johnson before their financial year ended on June 30. They would subsequently receive around $60 million from Tottenham for their academy graduate.

Nuno Espirito Santo’s side now find themselves one point behind Luton Town, who have leapfrogged out of the bottom three, with nine games left to play. Those two sides played out a 1-1 draw on Saturday in which Luke Berry scored an 89th minute equaliser at Kenilworth Road. Forest have won just once in the league in 2024 and picked up a total of just five points from nine matches.

In addition to their own form they will have to keep a close eye on the proceedings of a separate independent commission which is assessing the finances of Everton. The Toffees have already been handed a six point penalty for PSR breaches up to the 2021-22 season and are now facing further charges in relation to their losses in the 2022-23 campaign.