Nottingham Forest make appeal decision after points deduction for FFP breach

Latest Nottingham Forest news as Reds were hit with four-point deduction for Profitability and Sustainability Rules breach

Nottingham Forest have launched an appeal against their punishment for breaching financial regulations.

Last Monday, the Reds were docked four points for breaking the Premier League’s Profitability and Sustainability Rules (PSR). The deduction plunged them into the relegation zone with nine games remaining.

The club and the Premier League had one week to lodge an appeal following the receipt of the decision of the independent commission, which had reduced the initial sanction by two points due to their ‘exceptional co-operation’. Forest, though, have now decided to appeal the deduction.

A Forest club statement on Monday said: “Nottingham Forest can confirm that it has today lodged an appeal against the four point sanction imposed by the Commission in relation to the Club’s breach of the Premier League’s Profit & Sustainability Rules (PSR). The club will not be making any further statement at this time.”

A Premier League statement added: “Nottingham Forest Football Club has appealed the decision of an independent Commission to impose a four-point deduction on the club, after its admission of a breach of the Premier League’s Profitability and Sustainability Rules. The club lodged the appeal to the Chair of the Judicial Panel today, who will now appoint an Appeal Board to hear the case.”

The Reds were charged with breaking the rules in January, then faced a three-person independent commission earlier this month. When the verdict reached by the independent commission was announced last week, Forest made clear they were “extremely disappointed” with the punishment meted out.

However, an appeal is not without risks as there is the possibility of the four-point sanction being increased. Premier League rules state an appeal board may “except in the case of a fixed penalty, vary any penalty imposed or order made at first instance”.

Everton were docked 10 points earlier in the season for a PSR breach but appealed and their penalty was reduced to six points. The Toffees are facing a second charge, although the outcome of that is reportedly unlikely to come before April.

After any appeal is lodged, a hearing then takes place in front of an appeals board. The Premier League put in place a backstop date of May 24 – five days after the final round of fixtures for this season – to resolve the cases of both Forest and Everton.

Premier League clubs are only allowed to make a maximum loss of £105 million across a rolling three-year period, or £35m each season. For promoted teams that is reduced, meaning Forest were restricted to losses of £61m for the last three campaigns – £13m for the two seasons in the Championship prior to promotion, plus £35m last season.

In a statement, the Premier League said Forest admitted breaching Profitability and Sustainability Rules by £34.5m. The Reds’ four-point punishment could have been worse. The Premier League pushed for a six-point deduction – taking eight as a starting point to reflect Forest’s excess over the threshold being greater than Everton’s, but with two points discounted for the club’s early plea and cooperation.