Nottingham Forest has been docked four points by an independent commission for violating Premier League profit and sustainability rules. The commission found that Forest’s losses for the 2022-23 period exceeded the £61 million threshold by £34.5 million. Consequently, the immediate loss of points has pushed them below Luton Town, plunging them into the Premier League’s relegation zone.
In response to the decision, Forest expressed “extreme disappointment,” citing concerns for all aspiring clubs. They emphasized their unexpected setback after months of engagement with the Premier League, which they claim has damaged trust and confidence in the league. Notably, Forest are the second top-flight team penalized for breaches in Profit and Sustainability Regulations, following Everton’s ten-point deduction in November, later reduced to six points on appeal.
The City Ground club, likely to contest the ruling, underwent a hearing on March 7-8. Premier League regulations allow clubs to incur losses of up to £105 million over three seasons, with a limit of £35 million per campaign. However, Forest’s maximum allowable loss was capped at £61 million due to spending two years of the assessment period in the Championship.
The Premier League initially proposed an eight-point deduction for Nottingham Forest, later reduced to six, due to a breach 77% larger than Everton’s case. Forest criticized this as “utterly disproportionate” compared to the nine points prescribed for insolvency.
Despite demonstrating exceptional cooperation, Forest felt this was not reciprocated by the Premier League. The commission’s written findings detailed the reasoning behind the four-point deduction. Originally facing a six-point deduction, Forest’s early plea and cooperation led to the reduction. According to league rules, any appeals process must conclude by May 24, shortly after the season ends.
Between 2020 and 2023, Nottingham Forest incurred losses averaging £3 million annually, with a substantial £40 million loss in 2022 and £52 million in 2023, totaling £95 million.
After their promotion in May 2022, Forest made a British-record signing of 22 new players and completed five loan deals during the summer transfer window, resulting in a net transfer spend of £142.8 million for the 2022-23 season. They also sold two players for a fee, loaned out nine, and released two others. The Premier League charged Forest in January after confirming their breach of profitability and sustainability rules, along with Everton, in a statement.
