On Monday, March 18, Nottingham Forest got a four-point deduction in the Premier League for breaching the Profitability and Sustainability (PSR) rules. With this points deduction, Nottingham Forest has slipped into the relegation zone in the Premier League, one point behind the fellow strugglers Luton Town, staring down the barrel in the race for survival in the English top flight.
As per the report from the Guardian, the announcement from the Premier League about the matter is expected to happen later today. Nottingham Forest is likely to contest the decision of the Premier League to the appeal board.
Notably, this past weekend in the Premier League, Nottingham Forest had to settle for a 1-1 draw against Luton Town at the Kenilworth Road, staying ahead of them on the points table. But now, with the points deduction, they have found themselves back in the Premier League relegation zone once again.
It has been reported that Nottingham Forest admitted the breach of the PSR rules, but they had their defence based around extenuating circumstances regarding Brennan Johnson's sale.
Normally, the Premier League clubs are allowed to incur £105m in losses in three years but since Nottingham Forest spent two of these seasons in the Championships, their permitted losses were limited to £61m. This argument was used by the club to defend themselves from sanctions in regards to breaching the PSR rules, claiming that they were hamstrung after getting promotion, because the investment in the squad was necessary to compete against established teams in the Premier League.
Moreover, after getting the promotion to the Premier League in 2022, Nottingham Forest signed 42 players at a cost of about £250m, helping them stay in the English top flight last season.