The official confirmation about the deduction is likely to be announced by the Premier League later on Monday (Mar 18). The decision means Forest, who are currently on the 17th spot with 25 points, will slip to 18th, below Luton Town, with 21 points. 

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Burnley remain in 19th and are four points behind Forest with 10 games remaining, while Sheffield United are seven. With only nine matches remaining in the season, the points deduction could have serious ramifications for the club. 

Second club to face points deduction

Forest are the second top-flight team after Everton to have been penalised for PSR breaches. The Merseyside team was handed a 10-point deduction in November which was reduced to six after a successful appeal. 

The decision comes after Forest had a hearing on March 7 and 8. The club is likely to appeal the ruling for a softer punishment. 

Since being promoted to the Premier League in May 2022, Forest have signed 42 players, spending a record £250 million ($318 million) in the process. The extravagant spending allowed the club to stay in the league last season and kept them above the relegation zone up until matchweek 30.

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According to PSR rules, the clubs are only allowed to lose £105 million ($133.6 million) over a three-year period but Forest’s permitted losses were limited to £61 million ($77.6mn) because they spent two years of that period in the Championship.

The club was referred to an independent commission by the Premier League at the start of the year for the alleged breach. While Forest said they would continue to fully cooperate with the Premier League, the club hired leading sports lawyer Nick de Marco and argued they had worked within the regulations, particularly involving the sale of Brennan Johnson.

Johnson, an academy player at Forest, was sold to Tottenham Hotspur last year. Brentford initially showed interest in Johnson but Forest felt they could get more money if they sold their star player beyond the June 30 PSR deadline. 

Eventually, Johnson was sold for £47.5m to London-based Tottenham Hotspur in September but the independent panel did not accept this defence.

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