Nottingham Forest has lost its appeal to have its four-point Premier League deduction for breaking profitability and sustainability regulations (PSR) overturned.
When the penalty was announced in March, Forest declared they were “extremely disappointed” and warned that the league’s “integrity and competitiveness” were being compromised by spending limits on promoted teams.
The independent appeal board responded, “We reject all the criticisms made by the club of the commission’s approach and reasoning.” The club contended that their selling Brennan Johnson two months after the PSR deadline should be viewed as mitigation and the points deduction should be suspended.
With two games to go, Forest is still one spot and three points ahead of Luton, who are in the last relegation spot. Last Saturday, Sheffield United’s defeat gave Nuno Espírito Santo’s team more optimism for survival. On Saturday they play Chelsea at home, and on the last day they go to Burnley.
Forest lost £34.5 million over the £61 million allowed. Over a three-year period, Premier League clubs are authorized to lose £105 million; but, because Forest spent two of the years in the Championship, their allowed losses were capped at £61 million.
For every season throughout their three-year accounting period in the EFL, clubs’ allowed losses are lowered by £22 million.
The Premier League said: “The club argued that 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.”
The appeal board ruled the independent panel was right to promptly impose the penalty it did, rejecting each of these arguments. So the four-point deduction will stay in effect.
