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Forest likely to appeal against points penalty

For the second time this Premier League season, a points deduction for breaching its profit and sustainability rules (PSR) has dragged a club down the table and into the relegation zone.

First it was Everton, whose initial 10-point penalty last November was recently reduced to six on appeal, and now it is Nottingham Forest. A four-point deduction, confirmed by the Premier League on Monday has pushed Nuno Espirito Santo’s side from 17th to 18th, suddenly a point adrift of safety.

This is what a Premier League commission called a “significant” breach of PSR. Forest were allowed permissible losses of £61million ($77.6m) as a promoted club in 2022-23 but were found to have exceeded that threshold for a three-year period by the very precise sum of £34,536,000.

Forest have never contested the breach, either at the point of charge or during a two-day hearing held this month in London, but always maintained that the “uniqueness” of their situation warranted leniency. They said they were a club attempting to overcome financial disadvantages and unable to spend as others in the top flight had done.

The Premier League did accept Forest’s cooperation and early guilty plea should see two of those points retained, leaving a six-point deduction, but the commission would eventually land somewhere in the middle of what the respective parties deemed appropriate.

Unable to draw upon a “fixed formula”, a fact another panel had previously lamented in Everton’s appeal, the commission said that the entry point would be a three-point deduction, with a further three added owing to the scale of Forest’s breach.

The commission also took on board the club’s behaviour. “There is no dispute that early plea/exceptional cooperation should result in a deduction,” they said. That chopped two points off the six to bring the final deduction to four points.

Everton’s breach might have been smaller but the “incorrect information” that had been provided to the Premier League had been a consideration in bumping their deduction up to six points. Tellingly, the commission in Forest’s case noted that “there was no additional consideration around incorrect information being provided to the Premier League, as Everton had”.

It was made clear Forest were “extremely disappointed” with a four-point deduction given their cooperation throughout the process and it is thought to be probable that an appeal, something Everton opted for, will follow. Forest, as yet, have given no confirmation of this.

Forest now have seven days to notify whether they intend to appeal but if they choose to there are no guarantees it will be heard before the end of their season. There is an appeal backstop hearing date of Friday, May 24 — five days after Forest finish their campaign with a trip to fellow relegation candidates Burnley and shortly before the Premier League’s AGM.

With Everton’s second PSR charge yet to be heard and also carrying the prospect of an appeal, it all raises the threat of who stays up and who goes down being decided off the pitch and after the end of the playing season.

Some commentators have suggested that this means final league positions being determined by lawyers.   But once football became a big husiness it was inevitable that expensive lawyers would get involved.   Lawyers rarely pass up a chance to make money.

The proposals for the new football regulator have been published today, but their final shape will depend on what happens in their passage through Parliament.   The Premier League will certainly be lobbying to dilute them.   Whether the legislation can be passed before a general election in the autumn remains to be seen, but the legislative timetable is unusually thin,

Everton are saying nothing. They still have that other PSR charge to answer in the coming weeks, bringing the threat of a second points deduction, and there is little enthusiasm from within Goodison Park to begin a public spat in the wake of Forest receiving lesser sanctions. Privately, though, there will be inevitable frustration. 

 

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