Nottingham Forest docked points for PSR breach, Everton await similar fate

Nottingham Forest have received a four-point deduction for breaching the Premier League’s profitability and sustainability rules (PSR), The Guardian reports.

While the club acknowledged the violation, their defence hinged on extenuating circumstances surrounding the sale of homegrown talent Brennan Johnson.

Since Johnson emerged from their academy, any profit from his transfer would be classified as such under PSR.

Forest argued that they secured a higher fee by waiting until late in the summer transfer window to sell him, ultimately boosting their financial sustainability.

However, the Premier League’s independent commission wasn’t swayed by this argument.

Forest’s permitted losses were capped at £61 million due to their recent stint in the Championship, and the club argued that their promotion to the Premier League necessitated significant investment in the squad to compete with established teams. 

The Premier League is expected to formally announce Forest’s punishment later today, with Everton now facing a nervous wait to learn their own fate later this week.

What the punishment means for Everton and the relegation battle?

Forest’s punishment drops them into the relegation zone, one point adrift of safety and four behind Everton, who are braced for the outcome of their second PSR hearing, which is set to be revealed later this week.

The Toffees were handed a major boost in the relegation dogfight over the weekend as rivals Forest and Luton Town played out a 1-1 draw at Kenilworth Road.

While the latest development surrounding Forest’s PSR hearing will also come as a boost to the Toffees in the relegation battle, their respite could be shortlived when their own verdict is revealed.

Dyche’s team were previously handed a ten-point deduction – the most in Premier League history – but it was reduced to six after the club launched an appeal.

With a second hearing on the horizon, Forest’s punishment means Everton are now more likely to be hit with another point deduction before the post-international break trip to Bournemouth.

The club could strengthen their case based on new arguments, including the significant financial blow caused by the war in Ukraine impacting sponsorship deals.

The initial case hinged on a proposed sponsorship deal that the independent commission, and later an appeal board, deemed insufficiently advanced to consider. 

However, Everton will now be able to present the first set of accounts reflecting actual losses due to the suspension of existing sponsorship agreements related to Russia.

A key point of contention also revolves around the degree to which the alleged second breach was influenced by the initial one, for which Everton have already been penalised. 

The Toffees will have the opportunity to appeal any decision reached against them, with potential verdicts expected shortly after the final game of the Premier League season.