Nottingham Forest have failed in their appeal to have their four-point deduction for breaking financial rules in the 2022/23 season overturned.
The Forest were docked four points by an independent commission appointed by the Premier League in March after admitting a breach of PSR, having overspent by £34.5million over a three-year period.
Under the guidelines, Forest could have been handed a six-point penalty, but were given a less severe punishment by the Premier League on account of their “early plea” and “excellent co-operation”.
Forest made their defence in a hearing on April 24 but an independent appeal board has decided to uphold the original penalty.
The Premier League said in a statement that Forest argued “the independent commission committed an error in not treating its sale of a high-profile player shortly after the assessment period as a mitigating factor, and that it committed a further error in electing not to suspend some or all of the points deduction it imposed.”
However, they added that “each of these grounds was rejected by the appeal board, which found the independent commission was entitled to immediately impose the sanction it did”.
Forest remain 17th in the table, three points clear of Luton Town and the relegation zone with two matches of the season remaining.
The club initially described themselves as “extremely dismayed by the tone and content of the Premier League’s submissions” following their deduction, adding they were “also surprised that the Premier League gave no consideration at all to the unique circumstances of the club and its mitigation”.
According to a report by theathletic.com, Forest argued that they were placed at a serious disadvantage to the other Premier League clubs who had significantly higher spending limits due to their longevity in the top flight.
Nuno Espirito Santo’s side are next in action against Chelsea at the City Ground on Saturday, before their final game of the season at Burnley.