Nottingham Forest docked four points for Premier League financial rules breach
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Nottingham Forest have received a four-point deduction for breaching the Premier League’s profitability and sustainability rules, dropping them into the relegation zone, one point from safety.
An announcement from the Premier League is expected on Monday and Forest are likely to appeal.
Forest admitted the breach but their defence was based around extenuating circumstances in relation to the sale of Brennan Johnson. The club received a £30m offer from Brentford early last summer but the forward was unwilling to move and Forest felt they could get more money for their star asset if they waited beyond the 30 June PSR deadline. Johnson was sold for £47.5m to Tottenham in September but an independent panel did not accept this defence.
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With all money earned from selling Johnson, an academy product, going down as a profit, the club argued their approach was designed to make them more sustainable.
Premier League clubs are allowed to lose £105m over a three-year period but Forest’s permitted losses were limited to £61m because they spent two years of that period in the Championship. This was another part of their defence, with the club claiming they were hamstrung after being promoted because investment in the squad is vital to challenge at a higher level against more established teams.
Since promotion Forest have signed 42 players at a cost of about £250m, helping them retain their Premier League status last season.