Nottingham Forest handed points deduction, drop into relegation zone for financial breach

Nottingham Forest find themselves in the Premier League relegation zone after being hit with a four-point deduction for financial breach.

According to reports, the club broke the Profit and Sustainability Rules (PSR).

TalkSPORT revealed that the Premier League will officially announce the penalty later on Monday, confirming Forest’s drop to 18th place, with Luton benefiting as they move out of the relegation zone.

Forest’s infringement of PSR regulations was confirmed by the Premier League in January.

These rules states that over a three-year period, a team cannot incur losses exceeding £105 million.

Since their promotion to the Premier League in 2022, Forest are said to have spent £250 million on signing 45 players, while generating just £5 million from player transfers.

The sale of Brennan Johnson to Tottenham for £45 million last summer, though significant, came too late to offset their losses during the reporting period under review.