Nottingham Forest drop into the relegation zone after their penalty (NurPhoto via Getty)
Nottingham Forest have been hit with a four-point deduction for breaching the Premier League’s profitability and sustainability rules.
The penalty means Forest drop into the Premier League relegation zone, one point adrift of Luton Town who move up to 17th place.
Premier League is expected to release a statement on Monday, while Forest are likely to appeal.
In January, Forest were charged with a breach of the Premier League’s profitability and sustainability regulations.
According to The Guardian, Forest admitted the financial breach but their defence was based around ‘extenuating circumstances’ related to the sale of Brennan Johnson.
Forest received a £30 million bid from Brentford early last summer but the Johnson was not interested in the transfer and Forest wanted to get more money for their academy graduate if they waited until later in the transfer window.
Johnson was then sold after in a £47.5 million deal to Tottenham, but after the Premier League’s profitability and sustainability rules deadline on June 30.
Nottingham Forest have nine Premier League games remaining this season (Reuters)
Premier League clubs are permitted to record a maximum loss of £105m across a rolling three-year period, or £35m each season.
For promoted teams that figure is reduced, meaning that Forest have been restricted to losses of £61m for the last three seasons – £13m for each of their two campaigns in the Championship, plus £35m last season in the Premier League.
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After being charged by the FA, Forest said in a statement: ‘Nottingham Forest acknowledges the statement from the Premier League confirming that the club has today been charged with a breach of the league’s Profitability and Sustainability Rules.
‘The club intends to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution.’
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