The Premier League issued Nottingham Forest a points deduction on Monday that immediately sends the club into the relegation zone. The four-point slash comes as a result of Forest breaching the Profitability and Sustainability Rules (PSR) that protect financial fair play (FFP). Premier League authorities noted that Forest’s losses came from exuberant spending upon the club’s return to the Premier League. Now, the club is under the threat of failing to retain its status in the English top flight.
Per Premier League regulations, a club’s total losses cannot exceed $133 million over three years. However, Nottingham’s Forest loss limit was $77 million because it spent two of the three seasons in the Championship. Since earning promotion to the Premier League after the 2021/22 season, Forest spent over $318 million on player transfers.
However, the club’s top defense against the PSR breaches related to the sale of Brennan Johnson. The Forest academy product moved to Tottenham Hotspur for a massive deal worth over $60 million. However, the fiscal year for Premier League clubs runs from the beginning of July to the end of June. Therefore, the revenue brought in from the Johnson sale did not offset any losses from previous player acquisitions as the sale to Tottenham happened in September. The Premier League stated Forest had losses that were $44 million above the PSR threshold. Johnson’s sale to Spurs would have covered those losses.
Consequently, Forest now faces a points deduction similar to that of Everton from earlier in the season. Still, the Toffees dropped six points after an original 10-point penalty.
Forest did use the fact that its promotion hampered its spending as part of its defense against the Premier League’s sanctions. It is possible that affected the severity of the punishment.
Threat of relegation looms as Nottingham Forest suffers points deduction
As stated, striking four points from Nottingham Forest’s record…
Source link : https://worldsoccertalk.com/news/nottingham-forest-suffers-four-point-drop-to-fall-into-bottom-three
Author : Kyle Fansler
Publish date : 2024-03-18 15:35:37
Copyright for syndicated content belongs to the linked Source.