Nottingham Forest have been deducted four points for breaching the Premier League's Profit and Sustainability (PSR) rules, the league announced on Monday, moving the team into the relegation zone.
Forest have scored 25 points after 29 games this season, but after Monday's deduction they will drop to 21 points and sit in 18th place, one point behind Luton Town.
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It is the second points deduction in the Premier League this season after Everton were deducted 10 points (reduced to six after appeal) for PSR breaches and faced further punishment for another breach from the same period as Forest.
“The independent Commission determined the sanction following a two-day hearing this month, in which the club had the opportunity to detail a number of mitigating factors. The Commission concluded that the club had demonstrated 'exceptional cooperation' in its dealings with the Premier League throughout the entire process,” the Premier League said in a statement.
The independent commission's report said Forest's charge justified a six-point penalty, but this was reduced to four points after mitigation, which included an early statement and significant cooperation with the investigation.
Forest said they were “extremely disappointed” with the decision in a club statement released later on Monday.
“We were extremely dismayed by the tone and content of the Premier League's submissions to the Commission,” he said.
“After months of commitment to the Premier League and exceptional cooperation throughout, this was unexpected and has damaged the confidence we had in the Premier League.
“For the Premier League to ask for an eight-point penalty as a starting point was completely disproportionate to the nine points prescribed by its own insolvency rules.”
Premier League regulations stipulate that a club cannot lose more than £105 million ($133.6 million) over a three-year period.
The rules apply differently to Forest, due to the fact they were in the second-tier Championship until 2022, where clubs are allowed a maximum loss of £39 million ($49.6 million) over three seasons or £13 million ($16.6 million) per season. meaning his allowable losses over the last three seasons would total 61 million pounds ($77.7 million).
Forest was accused in January of violating those regulations during the period ending in the 2022-23 season.
Following their promotion ahead of the 2022-23 season, Forest broke the record for most transfers made by a Premier League club in the season-ending window with 21 separate deals completed.
