Nottingham Forest faced a setback on Monday as they were penalized with a four-point deduction for overspending, a move that plunges the team into the Premier League’s relegation zone with just two months remaining in the season.
The sanction comes after Forest was found to have violated the league’s profitability and sustainability regulations, which typically allow clubs to incur a maximum loss of 105 million pounds ($133 million) over three years or face penalties.
During the assessment period, which concluded in 2022-23 and included two seasons in the Championship, Forest exceeded the allowable losses by 34.5 million pounds ($44 million).
This breach occurred in their first year back in the Premier League last season, following an offseason splurge that saw the club make an unprecedented 21 signings for $160 million after securing promotion.
Under the management of Nuno Espírito Santo, Forest now drops from 17th to 18th place in the league standings, occupying one of the three relegation spots with 21 points and nine games left to play.
Conversely, Luton, with 22 points, moves out of the relegation zone due to Forest’s penalty.
The disciplinary action was determined by a three-person independent commission following a hearing this month. Forest has yet to indicate whether they will appeal the points’ deduction, a decision that could potentially prolong the resolution until after the season ends on May 19, raising concerns about the clarity of the relegation battle.
This penalty follows a recent case involving Everton, where a points deduction was reduced from 10 to six after an appeal, setting a precedent for future sanctions. While Forest displayed a higher level of cooperation during the investigation, Everton’s penalty was exacerbated by providing incorrect information to the Premier League.
Meanwhile, Manchester City is embroiled in a separate legal dispute with the Premier League over alleged financial breaches spanning from 2009-18. The outcome of City’s case is not expected until midway through next season due to the complexity of the allegations.
