Nottingham Forest have been hit with a Four-point deduction for breaching Premier League profitability and sustainability rules, MySportDab reports.
The Premier League Profits and Sustainability Rules restrict clubs in the English topflight, including Championship clubs from recording losses exceeding £105m over three seasons.
Each club is allowed to lose not more the £35m per season for Premier League clubs, and £20m for clubs in the second tier.
As per a report from the BBC, Nottingham Forest did not record losses exceeding £105m over the periods under assessment by the Premier League.
However, they are being penalized for crossing the financial threshold of £61m for Championship clubs. The report adds that the Tricky Trees crossed the ceiling in two of their seasons in the Championship before winning promotion to the English topflight.
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They are free to appeal the decision with reports they have been given until May 24 to tender their appeal.
As of the time of filing this report, the club is yet to issue a statement to the effect of the point deduction. However, close sources have revealed they are ready to appeal the decision.
While they have not disputed the said breaches, they have argued that the sale of Brennan Johnson to Tottenham Hotspur for £45m was a big financial leverage, helping balance the club’s financial books.
On the Brennan Johnson argument, the Premier League have insisted it happened at a later date of the period of assessment but Nottingham Forest have argued that the delayed sale allowed the club to augment the value of the player.
Ahead of a possible move to appeal the decision, the point deduction has seen the club drop into the relegation zone below Luton Town.
Nottingham Forest is the second club to be hit with a point deduction for breaching PSR rules after Everton were docked 10 points and later six points after appeal for the same offense.
