Nottingham Forest has officially filed an appeal against the four-point deduction they received for violating Premier League profit and sustainability regulations, as confirmed by the club.
An independent commission determined that Forest’s financial losses up to 2022-23 exceeded the £61m threshold by £34.5m.
As a result of the points deduction, Forest now finds themselves in the relegation zone in 18th place, trailing Luton Town by just one point.
The club released a statement indicating that they will refrain from making any additional comments on the matter.
Following Everton’s 10-point deduction in November for PSR violations, which was later reduced to six points upon appeal, Forest becomes the second top-flight team to face penalties for breaching these regulations.
Premier League clubs are allowed to incur losses of up to £105m over three seasons, equating to £35m per season. However, Forest’s maximum permitted loss was capped at £61m due to their two-year stint in the Championship during the assessment period.
Initially facing a six-point deduction – three points for the initial breach and an additional three for the extent of the breach – Forest’s cooperation and early plea led to a reduction to four points.
According to league regulations, any appeals process should be finalized by no later than, and ideally before, 24 May, which is five days after the conclusion of the season.
Having been charged in January, Forest secured promotion from the second tier in 2022 and proceeded to make a record-breaking 22 new player signings that summer, in addition to bringing in five players on loan.
Their net transfer expenditure for the 2022-23 season amounted to £142.8m.
Across 2020 and 2021, Forest incurred an average loss of £3m, followed by a £40m loss in 2022 and a £52m loss in 2023, totaling £95m.