Nottingham Forest have been handed a four-point deduction for breaching the Premier League’s profitability and sustainability regulations, resulting in their relegation to the zone, just one point from safety.
An official announcement from the Premier League is anticipated on Monday, with Nottingham Forest expected to appeal the decision.
While acknowledging the violation, Nottingham Forest argued that the sale of Brennan Johnson played a significant role in their decision-making. The football club disclosed that they had received a lucrative £30m offer from Brentford early last summer for the talented forward. However, as Johnson was unwilling to leave, Forest opted to wait for a better deal beyond the PSR deadline of 30 June. Eventually, Johnson was sold to Tottenham for £47.5m in September. Despite this explanation, an independent panel dismissed Forest’s defence.
Nottingham Forest maintained that their approach aimed to achieve greater financial sustainability, as the proceeds from Johnson’s sale, a product of their academy, were classified as profits. The club argued that their strategy was designed to make them more financially viable.
According to the Premier League’s regulations, clubs can incur losses of up to £105m over a three-year period. However, due to spending two years in the Championship during that period, Nottingham Forest’s allowable losses were limited to £61m. This aspect formed part of the club’s defence, as they argued that their financial flexibility was restricted following promotion, asserting that investment in the squad was crucial to compete at a higher level against more established teams.
Since their promotion, Nottingham Forest have made significant investments in player acquisitions, signing 42 players at a cost of approximately £250m, a move that contributed to the team successfully retaining their Premier League status last season.
+ There are no comments
Add yours