Premier League imposes points deduction on Nottingham Forest for financial violations

The Premier League have penalized Nottingham Forest by docking them four points due to infringements on Profit and Sustainability Regulation (PSR).

This imposition results in the East Midlands team's demotion from the 17th place to the relegation zone with a score of 21 points. Now they find themselves below Luton Town who will ascend from the bottom three.

The Premier League communicated on Monday stating: 'An independent Commission has exacted an instant four-point reduction on Nottingham Forest FC due to a contravention of the Premier League's Profitability and Sustainability Regulations (PSRs) for the season climaxing 2022/23.

'Nottingham Forest was referred to an independent Commission on January 15 after acknowledging that it surpassed the applicable PSR limit of £61 million by £34.5 million. The limit was less than £105 million since the club spent two seasons of the evaluation period in the EFL Championship.The process was carried out following new Premier League Rules, which set a swift timetable for PSR cases to be resolved in the same season the grudge is made.

'The independent Commission decided the penalty after a two-day hearing this month wherein the club was granted the opportunity to elaborate on an array of mitigating factors. The Commission concluded that Nottingham displayed 'exceptional cooperation' in its interactions with the Premier League throughout the process.'

The club's statement read: 'Nottingham Forest deeply disagrees with the Commission's decision to inflict a penalty of four points, to be utilized immediately.

'Despite our discontentment, we acknowledge the Commission's swift handling of the situation. The Club believes it is critical for the league's integrity that charges are addressed within the season they're raised.

'We were seriously displeased by the nature and material of the Premier League's affirmations to the Commission.'

The first ones to communicate that Forest confessed to the infringement were The Guardian. However, it's likely the team will appeal the decision.

The focus of Forest's defence is believed to have been the sale of their academy product Brennan Johnson. The claim is that they could have sold him to Brentford prior to June's PSR deadline, but chose to hold out for a larger fee.

The Welsh winger was eventually sold to Tottenham Hotspur on the final day for £47.5m. Forest argued they had the concept of sustainability in mind with this decision but an independent panel dismissed their defence. The club also asserted their losses were due to essential investment in the playing squad to avoid relegation.

Forest weren't the only ones penalised for PSR infringements this season. Everton were initially docked ten points for their own infractions, reduced to six on appeal. They're still awaiting the verdict of another charge, which could result in further point deductions.

Both Forest and Everton are currently wrestling against relegation, with Nuno Espirito Santo's team now a point from safety behind Luton. Sean Dyche's men are in the 16th place holding 25 points, with Brentford ahead of them by a single point.