Nottingham Forest have been given an immediate four point deduction for breaching the Premier League’s profitability and sustainability rules.
The deduction, announced on Monday, follows an admission by the club it had breached a spending threshold of £61 million by £34.5 million.
Forest now slip one place in the league to 18th, meaning they sit in the relegation zone with nine games of the season remaining following a 1-1 away draw with Luton on Saturday.
The threshold applied by the league was lower than the usual £105 million as the club spent two seasons of the relevant period in the Championship.
The case was heard in accordance with new Premier League Rules, which provide an expedited timetable for such cases to be resolved in the same season the complaint is issued.
The ruling came after the case was examined by an independent commission.
Following the decision, Forest said they were “extremely disappointed” and heavily criticised the Premier League’s handling of the case, claiming it had implications for clubs trying to break into the top division.
The independent Commission determined the sanction following a two-day hearing this month, which the club was able to make representations to.
The Commission found the club had demonstrated “exceptional cooperation” in its dealings with the Premier League throughout the process.
Following the announcement, Forest released a club statement, which read: “Notwithstanding our disappointment, we thank the Commission for agreeing to deal with this matter on an expedited basis. The Club considers it to be essential for the integrity of the league to have charges resolved in the season in which they are issued.”
However, the club went on to accuse the Premier League of ignoring its mitigation, which included the argument it had tried to respect the rules after missing a key deadline.
Details released today also confirm the timing of the sale of winger Brennan Johnson to Spurs in January for £47.5m is central to the case. Had Forest completed the sale earlier, they may have remained within profitability limits for the relevant year.
“We were extremely dismayed by the tone and content of the Premier League’s submissions before the Commission,” the club said.
“After months of engagement with the Premier League, and exceptional cooperation throughout, this was unexpected and has harmed the trust and confidence we had in the Premier League.
“That the Premier League sought a sanction of eight points as a starting point was utterly disproportionate when compared to the nine points that their own rules prescribe for insolvency.”
It added: “Even after the Club had missed the PSR reporting deadline, it still took steps to ensure Brennan Johnson was sold before the end of the transfer window. That was a clear demonstration of our respect and support for PSR.
“There will be occasions when a player transfer cannot be completed in the first half of a transfer window and can only be completed at the end of that window. This should not be a reason for the condemnation of a club. For this not to be recognised by the Commission or the Premier League should be a matter of extreme concern for all fans of our national game.
“Of wider concern for all aspirant clubs is the disturbing effect this decision will have on the operation of the player trading model. This is the only model by which clubs outside of the small group at the very top end of the Premier League can realistically advance up the football pyramid.
“The rationale of the Commission is that clubs should only invest after they have realised a profit on their player development. This reasoning destroys mobility in the football pyramid and the effect of the decision will be to drastically reduce the room for manoeuvre for all such clubs, leading to the stagnation of our national game.
“We believe that the high levels of cooperation the Club has shown during this process, and which are confirmed and recorded in the Commission’s decision, were not reciprocated by the Premier League.”
Forest next face Crystal Palace at home on March 20.
