Nottingham Forest ‘LOSE appeal against four-point deduction’ for breaching Premier League spending rules
Nottingham Forest have lost their appeal against a four-point deduction for breaching the Premier League’s financial rules, according to reports.
The decision, as per The Athletic, deals a blow to their hopes of avoiding relegation to the Championship as the club would have been hoping to get some of the points back. Forest currently sit 17th, just three points above the relegation zone.
The club were penalised for failing to stay in line with the Premier League’s profitability and sustainability regulations. Forest, whose legal team was led by Nick De Marco KC, had said they were ‘extremely disappointed’ to be hit with a four-point sanction.
Premier League clubs can lose £105m over three seasons – £35m per campaign – but Forest’s maximum loss was only permitted to be £61m because they spent two years of the assessment period in the Championship.
Forest exceeded their PSR threshold by as much as £34.5million in the relevant period, the Premier League said.
Nottingham Forest were credited with an early admission of guilt and cooperation
The four-point deduction put them in the relegation zone below Luton (table on March 18)
Forest owner Evangelos Marinakis will be disappointed with the decision of the appeal panel
The club’s early admission of guilt and collaboration with the Premier League contributed to the club receiving a lesser sanction than Everton, who were initially docked 10 points before the punishment was reduced to six on appeal.
The Premier League had suggested two points be deducted from the penalty imposed on Forest, while the club pushed for a one-third reduction – which would have taken the sanction down to three points.
The Commission ultimately determined not to deduct a third point for an early plea, instead deciding to deduct two points for the early plea and cooperation.
Forest were ultimately hit with a four-point penalty as a result.
Part of Forest’s defence had involved the sale of Brennan Johnson to Tottenham for £47.5million in August.
As PSR 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.
Following the decision to deduct them four points, Forest said in a statement: ‘We were extremely dismayed by the tone and content of the Premier League’s submissions before the Commission.
| Sanction effect | |
|---|---|
| Entry point for a significant breach | 3 |
| Circumstances and scale of the admitted breach | +3 points |
| Less: Mitigation | -2 points |
| Total sanction | 4 points |
‘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.’
Under-pressure Forest boss Nuno Espirito Santo previously called the situation ‘a mess’.
‘It can affect the integrity of the competition,’ said Nuno. ‘All these things must be solved as soon as possible.’
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