Nottingham Forest 'receive points deduction' following Premier League financial rules breach

Nottingham Forest have received a four-point deduction from the Premier League after breaching profitability and sustainability rules.

The Guardian reports an announcement from the Premier League is expected on Monday and Forest are likely to appeal.

It will see Nuno Espirito Santo's side replace Luton Town in the relegation zone. Forest will be one point from safety and they are the second team to received a points deduction this season after Everton.

The club admitted to the breach but their defence was based around the sale of former forward Brennan Johnson.

Brentford bid £30 million for Johnson at the start of last summer, although the Wales international didn't want to move.

Despite the PSR deadline being June 30, Forest felt they could get more money for Johnson if they waited until later in the summer.

Johnson eventually departed for Tottenham Hotspur in a £47.5 million deal in September.

The club argued selling Johnson, an academy player, made their model more sustainable. An independent panel rejected this defence.

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Premier League clubs can lose £105 million over three years under current regulations.

Forest's losses were limited to £61 million after spending two seasons in the Championship before winning the 2022 Championship play-off final.

This formed another part of Forest's defence. Club chiefs claimed investment in the squad was vital to avoid immediate relegation from the top-flight.

Forest have signed a staggering 42 players since promotion. Former manager Steve Cooper had to rebuild his squad for Forest's first Premier League campaign since 1999 after getting promoted with several loan signings.

Last season, Cooper guided Forest to 16th and a League Cup semi-final.

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Forest drew 1-1 with Luton on Saturday afternoon. Post-match, Espirito Santo admitted he was frustrated at how his side failed to kill off the game.

He said: "You can see in the dressing room we are frustrated because we did enough to take three points.

"This is how it goes. We are frustrated now but we bounce back and go again, and we expect the support of our fans of course.

"I’m disappointed because I think we did enough to take three points."

Forest return to action after the international break against Crystal Palace.