Nottingham Forest has officially filed an appeal against their four-point deduction for violating Premier League profit and sustainability regulations, as confirmed by the club.
An independent commission determined that Forest’s financial losses for the 2022-23 season exceeded the £61 million threshold by £34.5 million.
This point deduction has dropped Forest into the relegation zone, currently occupying 18th place, just one point behind Luton Town.
In a statement, Forest mentioned that they would not provide any further comments regarding this matter.
This incident marks the second instance of a top-flight team facing penalties for breaching PSR regulations, with Everton previously losing 10 points in November, later reduced to six after an appeal.
Forest expressed their disappointment with the decision last week, highlighting concerns that arise for all ambitious clubs in light of this ruling.
Premier League clubs are allowed a cumulative loss of £105 million over three seasons, equating to £35 million per season. However, due to spending two years in the Championship during the assessment period, Forest’s maximum allowable loss was capped at £61 million.
Initially facing a six-point deduction (three for the breach and three for the magnitude of the breach), Forest’s cooperation and early plea resulted in the deduction being reduced to four points.
The league’s regulations stipulate that the appeals process should conclude by May 24, five days post the season’s end. However, Forest’s appeal is anticipated to reach a resolution before this deadline.
Nottingham Forest, promoted from the second tier in 2022, made significant signings that summer, including a British-record 22 players and five loan acquisitions. Their net transfer expenditure for the 2022-23 season totaled £142.8 million, with losses amounting to £95 million across the specified period.