Breaking News: Man Utd and Man City’s Premier League rival handed points deduction following financial rule breach

The Premier League is very serious about financial infractions.

Nottingham Forest has been placed in the Premier League relegation zone as a result of their four-point deduction for breaking the profitability and sustainability rules (PSR).

After Forest revealed losses that exceeded the maximum amount allowed for the three-year period that ended with the 2022–2023 season, the Premier League filed charges against the team in January. Due to allegations that they had both committed the same offense, Everton and the club were referred to a separate commission.

Following an investigation into the allegations, the impartial panel suggested deducting four points from Forest, placing them in the bottom three. Nuno Espirito Santo’s team was three points clear of safety after a 1-1 draw with Luton Town on Saturday; however, they have since dropped behind their hosts and into 18th place.

Nottingham Forest FC has been immediately docked four points for violating the Profitability and Sustainability Rules (PSRs) of the league for the 2022–2023 season, according to a Premier League statement. An impartial commission made this decision.

After Nottingham Forest admitted that it had overpaid by £34.5 million to surpass the applicable PSR threshold of £61 million, the club was referred to an independent Commission on January 15. The threshold was less than £105 million because the club played two seasons in the EFL Championship during the assessment period. During the case hearing, the Premier League Rules—which provide an expedited timeline for PSR cases to be resolved in the same season the complaint is issued—were adhered to.

“The club presented a number of mitigating circumstances during a two-day hearing this month, during which the independent Commission decided to impose the sanction. The Commission stated that the club demonstrated “exceptional cooperation” in all of its correspondence with the Premier League.

Although they acknowledged the breach, Forest maintained that their desire to secure more funding for Brennan Johnson was a contributing factor. They received a bid of £30 million from Brentford early in the summer of last year, and accepting it would have likely kept them inside PSR bounds. They thought they could get more, though, and in September they sold the winger to Tottenham for £47.5 million; this transaction was not recorded in the previous season’s financial statements.

Everton is now the second team this season to lose points after initially receiving a 10-point deduction in November. Following an appeal, that was reduced to six in February, and it is expected that Forest will file a comparable appeal.

Everton, who are awaiting the result of their second charge related to a breach that happened at the same time as Forest, could potentially lose another point. Championship team Leicester City may also forfeit points prior to the next season in the event that they are promoted for more than the permitted amount.

The investigation into Manchester City’s alleged violations of competition laws between 2009 and 2018 is ongoing, as the club is facing 115 charges. Given the scope and intricacy of their accusations, a settlement is unlikely to happen for some time, and the club vigorously contests any wrongdoing.

Manchester United has repeatedly stated that PSR limitations are a significant barrier to the hiring that many supporters have been hoping for, particularly in the most recent January windows. Erik ten Hag has spent over £400 million since taking over as manager in 2022, but he hasn’t made any purchases during the last two mid-season windows; the only players on the team have been loan signings like Marcel Sabitzer and Wout Weghorst.