Nottingham Forest have confirmed they have lodged an appeal against their four-point deduction for breaching the Premier League’s profitability and sustainability rules.
Last Monday, Nuno Espirito’s team was accused of breaching spending rules in January 2024, along with Premier League side Everton.
As a result of the punishment, Forest fell into the relegation zone and now sit 18th in the Premier League table with 21 points, one point behind Luton in 17th place.
Now, after the decision, the club decided xformerly known as Twitter, on Monday to confirm that they have launched an appeal.
In a strong statement, they said: “Nottingham Forest can confirm that it has today lodged an appeal against the four-point sanction imposed by the Commission in relation to the Club’s failure to comply with the Premier League’s Profit and Sustainability Rules (PSR). League”. The club will not make any further statements at the moment.”
Nottingham Forest confirmed they have lodged an appeal against their four-point deduction
Forest moved into the relegation zone after receiving the penalty and fell behind Luton Town
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The Premier League has claimed that the club exceeded its PSR threshold by up to £34.5m in the relevant period.
Following the initial sanction, Forest released a statement saying they were “disappointed” with the decision to impose a points penalty.
It said: “We were extremely dismayed by the tone and content of the Premier League’s submissions to the Commission.
“After months of commitment to the Premier League and exceptional cooperation throughout, this was unexpected and has damaged the confidence we had in the Premier League.
“For the Premier League to ask for an eight-point penalty as a starting point was completely disproportionate to the nine points prescribed by its own insolvency rules.
“We were also surprised that the Premier League did not take into account the Club’s unique circumstances and their mitigation. In circumstances where future PSR commissions follow this approach, it would be extremely difficult, if not impossible, for newly promoted clubs without parachute payments compete, thereby undermining the integrity and competitiveness of the Premier League.
The statement also noted a deal to sell Brennan Johnson to Tottenham, which was thought to be a key part of his defense for breaching spending rules in the relevant period.
Nuno Espirito Santo’s team expressed concern about the points reduction when it was issued
Forest say they could have sold Johnson to Brentford in June for around £30m, which would have put them in a healthier financial state for the 2020-23 period, but almost £20m out of pocket in total.
As FFP calculations are made over a three-year period ending June 30, Johnson’s deal will count towards the calculation for the 2021-2024 period rather than 2020-23, as it was completed by the deadline.
Clubs can suffer financial losses of £105m over a three-year period, with Forest reporting an annual loss of £45.6m in their latest accounts.
For the club’s sustainability, they argue that accepting almost £50m for Johnson in August was better than accepting £30m earlier in the summer.
The club says the sale of Brennan Johnson to Tottenham was “a clear demonstration of our respect and support for the PSR”
The statement continued: “Even after the Club missed the PSR reporting deadline, it still took steps to ensure Brennan Johnson was sold before the end of the transfer window.” That was a clear demonstration of our respect and support for the PSR.
‘The Commission’s decision raises issues of concern for all aspiring clubs. The player transfer market is a highly specialized business environment that cannot be compared to the sale of normal products and services.
“There will be occasions when a player’s transfer cannot be completed in the first half of a transfer window and can only be completed at the end of that window. This should not be cause for condemnation of a club. Let this not be recognized by the Commission or the Premier League should be a cause of extreme concern for all fans of our national football.
‘What is of most concern to all aspiring clubs is the disruptive effect this decision will have on the operation of the player exchange model. This is the only model by which clubs outside the small group at the top of the Premier League can realistically climb the football pyramid.’