Forest expected to learn outcome of PSR charge next week

Daily News
4 Min Read
Forest expected to learn outcome of PSR charge next week

Nottingham Forest are expected to learn the outcome of their Profitability and Sustainability (PSR) charge early next week.

The club were charged in January after confirming they were in breach of the rules for the assessment period ending 2022-23.

Forest are facing a possible points deduction, which could see them drop into the Premier League’s bottom three.

They will then have three weeks to appeal against any sanction that is given.

The six-point deduction Everton received for similar breaches (reduced from 10 on appeal) is regarded by some as a benchmark punishment.

Everton and Nottingham Forest charged with alleged breaches of Premier League financial regulations

Image: Everton and Nottingham Forest have both been charged with breaches of Premier League financial regulations

Forest, who have lost their last three in the Premier League and won just once in 2024, play relegation rivals Luton on Saturday.

The Hatters currently sit three points behind them and occupy the final relegation spot in 18th place.

Why have Forest been charged?

Sky Sports News senior reporter Rob Dorsett:

The complication starts here. Under Profitability and Sustainability Rules, commonly known as Financial Fair Play rules, Premier League clubs cannot return losses greater than £105m over three seasons.

But Forest weren’t in the Premier League for the three seasons under review. Instead, they have been measured against a combination of Football League and Premier League rules which meant they couldn’t return losses greater than £61m.

Brennan Johnson found the net in the second half but it was ruled out by the offside flag

Image: Nottingham Forest sold Brennan Johnson to Tottenham for £47.5m

And Forest breached that £61m limit?

That’s what they have been charged with, yes.

Is there a ‘but’ coming?

Yes. Two, in fact.

The first ‘but’ is that Forest believe they were only in breach for two months – between filing their accounts on June 30 last year and September 1 when they received the first instalment of their sale of Brennan Johnson to Tottenham.

The dates are significant because Forest – and at least one other Premier League club that we are aware of – believe that the dates for Premier League accounting should be aligned with the transfer window.

And the second ‘but’ is that Forest believe not only would they have been within FFP and the Premier League’s sustainability rules had they sold Johnson in June, but selling Johnson in September was in the ‘spirit’ of those sustainability rules.

Why would Forest argue that delaying Johnson’s sale was the right thing to do?

Because deferring his sale ultimately generated more money: whereas Brentford offered £35m for Johnson in June, Tottenham eventually paid a club-record £47.5m on Deadline Day. Forest’s argument is that by holding out for their asking price they were respecting the spirit of the league’s substantially rules.

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