Official: Nottingham Forest PSR appeal rejected

Nottingham Forest’s took a hard hit as their appeal against a four-point Premier League deduction for breaching profitability and sustainability rules (PSR) has been rejected.

Forest expressed their disappointment with the punishment when it was initially imposed in March, asserting that spending restrictions on promoted clubs compromised the league’s “integrity and competitiveness.” They argued that their decision to sell Brennan Johnson two months after the PSR deadline should be considered as mitigation, urging for the suspension of the points deduction. However, an independent appeal board dismissed their arguments, stating, “We reject all the criticisms made by the club of the commission’s approach and reasoning.”

BREAKING: 🚨 Nottingham Forest lose appeal against profit and sustainability breach and four-point penalty remains in place. pic.twitter.com/le6X84QUf9

— Sky Sports News (@SkySportsNews) May 7, 2024

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Despite the appeal, Forest remain just one place and three points above Luton, who are currently in the relegation zone, with only two games left in the season. Nuno Espírito Santo’s side have improved their chances of survival by defeating Sheffield United last weekend and face a crucial fixture against Chelsea at home on Saturday, followed by an away trip to Burnley on the final day.

Forest breached the permitted losses of £61m by £34.5m. Premier League clubs are allowed to incur losses of up to £105m over a three-year period, but Forest’s permitted losses were limited to £61m due to their two-year stint in the Championship during the assessment period. Clubs’ permitted losses are reduced by £22m for each season they spend in the EFL across a three-year accounting period.

The Premier League responded to Forest’s appeal outcome, stating, “The club argued that the independent commission committed an error in not treating its sale of a high-profile player shortly after the assessment period as a mitigating factor, and that it committed a further error in electing not to suspend some or all of the points deduction it imposed. Each of these grounds was rejected by the appeal board, which found the independent commission was entitled to immediately impose the sanction it did. The four-point deduction will therefore remain in place.”