Nottingham Forest expected to learn outcome of Profitability and Sustainability (PSR) early this week
Nottingham Forest are expecting to learn Profitability and Sustainability (PSR) fate early this week; Forest are the second club to be charged for breaches this season, alongside Everton, who were docked six points; Nuno Espirito Santo's side three points above relegation zone
Monday 18 March 2024 21:12, UK
Nottingham Forest are expected to learn the outcome of their Profitability and Sustainability (PSR) charge early this 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.
The six-point deduction Everton received for similar breaches - reduced from 10 on appeal - is regarded by some as a benchmark punishment.
Forest, who have won just once in 2024, drew at relegation rivals Luton on Saturday and currently sit immediately above the drop zone in 17th place, three points ahead of the Hatters.
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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.
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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