Nottingham Forest ‘LOSE appeal against four-point deduction’ for breaching Premier League spending rules… leaving them just three points above relegation zone
WHO IS SUBJECT TO FFP RULES AND HOW MUCH CAN THEY LOSE?
In England, all Premier League clubs must comply with the Profit and Sustainability Regulations (PSR), which state that they cannot lose more than £105 million in a three-year period. In the EFL, the rules differ depending on the division a club is in. In the Championship, Profit and Sustainability (P&S), the rules stipulate that clubs can lose up to £39 million over three years. In Leagues One and Two, clubs follow the Salary Cost Management Protocol (SCMP), which states that each club can only spend a fixed percentage of its revenue on wages. That limit could also be affected by capital injections or net transfer expenses.
ARE ALL CLUB EXPENSES AND INCOME PART OF FFP CALCULATIONS?
Income yes. No spending – and this is where the complications come in. Clubs are allowed to spend money on infrastructure, women’s teams and academy fees and not see it go towards their bottom line. In Everton’s previous 10-point sanction, which was reduced to six after appeal, there was a controversial point over interest on loans the club said were linked to their new stadium, which the Premier League disputed.
WHAT DID BOS DO WRONG?
Given their promotion from the Championship, Forest had to play by different rules and their allowable losses were at a lower level of £61 million. In fact, their top-tier campaign came with a fee of £35 million, with £13 million for each of the two seasons in the second tier. Forest have famously signed 43 players since winning the play-off final in May 2022.
WHY IS THERE A RECENT PICK IN COSTS?
P&S came into action during the 2015-2016 season. The simple answer is that the ‘spike’ has happened now because it has only recently emerged that the three clubs involved – if you include Manchester City – have broken the rules.
WHAT IS THE APPEALS PROCESS, DO THE DEDUCTIONS APPLY THIS SEASON AND WHAT DEFENSES CAN CLUBS HAVE?
A club has 14 days to respond and the hearing must be completed by early April – before any appeal is heard. If an appeal is lodged, the process could take until the end of May – after the end of the season. Due to the subjectivity involved, clubs can rely on a number of areas. With Forest it is expected that they will claim that they sold Brennan Johnson to Tottenham on deadline day in August for a higher fee (a club record £47.5 million) than they would have received in June – before the end of the financial year. although it remains to be seen whether that would work.
WHAT IS THE BIGGEST PUNISHMENT A CLUB CAN RECEIVE IF FOUND GUILTY?
There is no sanctions policy or fixed penalty. Instead, any punishment is in the hands of the independent committee appointed by the Premier League, and the rules of the game are ‘open’. It is likely that the harshest punishment would come in the form of a heavy points deduction, which could make relegation a formality for an offender.
By Mike Keegan