Nottingham Forest’s recent club-record sale of Brennan Johnson to Tottenham may not be enough to defend the club against a potential breach of the Premier League’s financial rules, as suggested by finance expert Stefan Borson. Despite this, Borson believes that the fact that the charge is limited to a single year of financial breach could work in Forest’s favour when the independent commission makes its decision.
The charge against Forest, which was issued in January, pertains to the club breaching the Premier League’s financial regulations. The club is set to face an independent commission soon and may potentially face sanctions, including a points deduction.
The sale of Brennan Johnson for £47.5m to Tottenham was a crucial part of Forest’s defence, as it fell outside the accounting timeframe assessed by the Premier League. The club argues that they were able to secure a larger transfer fee for Johnson by waiting until late in the window, despite rejecting smaller offers from Brentford earlier in the summer.
The financial regulations stipulate that Premier League clubs are only allowed a maximum loss of £105 million over a rolling three-year period, or £35m per season. For promoted teams, this limit is reduced. Forest faced restrictions on losses of £61m for the last three campaigns, including their time in the Championship before being promoted to the Premier League for the 2022/23 season. Despite this, the extent to which the club breached the limit has not been disclosed.
Stefan Borson expressed his concerns for Forest, citing the potential aggravating factors of reckless spending. However, he also noted that the club only breached one year of the Premier League financial fair play regulations. He suggested that they may benefit from allowances granted by the EFL for the two years in the Championship and the Premier League for the most recent season. As a result, Borson believes that Forest may only face a penalty of two to three points, along with potential aggravating factors related to reckless spending.
Borson also stated that the outcome could be influenced by how the club handles the two-year period in the EFL and the potential lack of mitigation for the sale of Brennan Johnson. He expressed doubt that the paperwork surrounding Johnson would match the tone of Forest’s appeal.
In conclusion, Nottingham Forest is heading into a potentially challenging period, as they seek to defend themselves against the charge of breaching the Premier League’s financial regulations. With the independent commission set to make a decision in the near future, the club will need to carefully navigate the complexities of the case to avoid potential sanctions.
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