For Nottingham Forest, the ramifications of being accused of violating the Profitability and Sustainability Rules (PSR) are still very unclear.
Nuno Espirito Santo’s team defeated West Ham United 2-0 last weekend to create further distance between themselves and the relegation zone. Even though the Reds try to play their part on the field, things off the field remain unclear.
This week, Forest is anticipated to learn the date of their PSR hearing, which will be a momentous occasion for the team. We examine our current understanding of the situation below.
Forest was accused of breaking the Profitability and Sustainability regulations of the Premier League a little over a month ago, on January 15. Having already lost 10 points this season, Everton was charged at the same moment.
Premier League clubs are only permitted to lose a maximum of £105 million over a rolling three-year period, or £35 million every season, according to financial regulations. This is lowered for promoted teams, therefore the Reds are only allowed to lose £61 million over the last three seasons—£13 million for the two Championship seasons before promotion and an additional £35 million for the most recent one. It is yet unknown how far the club has gone beyond the limit.
“Nottingham Forest acknowledges the statement from the Premier League confirming that the club has today been charged with a breach of the league’s Profitability and Sustainability Rules,” a statement from Forest said at the time. The club is confident in a prompt and equitable settlement and plans to continue working closely with the Premier League on this issue.
“Both Everton FC and Nottingham Forest FC have acknowledged to the Premier League that they are in violation of the League’s Profitability and Sustainability Rules (PSR),” the Premier League stated. This is because, for the evaluation period ending in Season 2022–2023, losses were incurred that were greater than the allowable criteria.
“In accordance with Premier League Rules, both cases have now been referred to the chair of the Judicial Panel, who will appoint separate Commissions to determine the appropriate sanction. Commissions are independent of the Premier League and member clubs. The proceedings are heard in private with the Commissions’ final decisions made public on the Premier League’s website. The League will make no further comment until that time.”
Forest had a two-week window to respond to the charge, and according to regulations, an independent commission must conclude a hearing by April 8 after charges are filed. The club is expected to learn the date of their hearing this week, with reports suggesting it will take place within the first two weeks of March.
Following the hearing, both the club and the Premier League have the option to appeal the outcome. Any appeals must be resolved by May 24, just after the end of the current season, and any points deductions or sanctions must apply to this season. Executives at other Premier League clubs reportedly believe that Forest will face points deductions.
Manager Nuno Espirito Santo has emphasized the importance of focusing on matters within their control, such as game preparation, matches, and player health and fitness, rather than external distractions.
Football finance expert Kieran Maguire believes Forest has been treated unfairly in terms of Financial Fair Play (FFP), noting that they were promoted with a relatively low-cost squad compared to other teams. However, he also acknowledges that Forest may have exceeded FFP limits, especially considering their significant player signings and wages.
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