Nottingham Forest has initiated an appeal process against the four-point penalty imposed by the Premier League for violations of financial regulations, the club officially announced.
An independent body discovered that Nottingham Forest exceeded the allowed financial loss limit of £61 million for the 2022-23 season by £34.5 million.
The penalty has resulted in Nottingham Forest dropping into the relegation zone, currently positioned at 18th, trailing Luton Town by a point.
Forest are the second team in the Premier League to face penalties for breaching Profit and Sustainability Regulations (PSR), following Everton’s 10-point deduction in November, which was later reduced to six points upon appeal.
According to Premier League guidelines, clubs are allowed a maximum loss of £105 million over three seasons, equating to £35 million per year. However, Nottingham Forest was subject to a stricter limit of £61 million due to spending two seasons in the Championship within the review period.
Initially facing a six-point deduction—three points for the breach and an additional three for the extent of the breach—Nottingham Forest’s penalty was reduced to four points due to their prompt admission and cooperation.
The Premier League has stipulated that the appeal process should be finalised no later than May 24, ideally earlier, which is five days subsequent to the season’s conclusion.
Charged in January, Nottingham Forest achieved promotion to the Premier League in 2022 and subsequently made significant investments in their squad, including the acquisition of 22 new players, setting a British record, and taking in five loaned players.
Their net expenditure on transfers for the 2022-23 season reached £142.8 million, with the club incurring losses of £95 million over four years, significantly exceeding the average annual loss limits set by the league.
Image credit: Emilio Garcia
