Nottingham Forest must raise £30m or risk another points deduction

Nottingham Forest must sell a player before the end of June if they want to avoid another points deduction next season, even if they are relegated from the Premier League, per The Times.

This comes after an independent commission imposed a four-point deduction on the club for breaching financial rules. The judgement also revealed that Forest are at risk of breaching the regulations again.

Forest must generate around £30 million in profit through player sales to comply. Among their sellable assets is midfielder Morgan Gibbs-White. The 24-year-old would command a big transfer fee.

The Premier League’s announcement revealed that relegated clubs still fall under their jurisdiction for the following year.

This rule means Leicester City, despite being in the Championship, could face charges for breaching financial rules last season.

Forest’s financial statements show losses of £40m in the 2021/22 season, £52m in 2022/23 and projected losses of £12-17m for the current year ending June 2024.

These combined losses would total between £104-109m, exceeding the maximum permitted loss of £82m, down from the permissible £105m due to Forest being in the Championship for one year.

The commission’s findings state that potential sanctions for next season will be determined when the 2023/24 financial results are reviewed.

Forest are considering appealing the four-point deduction after expressing disappointment with the penalty. 

However, an appeal could backfire, with Premier League rules allowing the board to vary any penalty imposed.

This means Forest must weigh the risk of appealing the decision. Their breach was higher than Everton’s £19.5m, and the Toffees’ initial ten-point deduction was reduced to six on appeal.

The Premier League had argued for an eight-point deduction for Forest, and while an appeal from them is unlikely, the board could challenge the current sanction if deemed too lenient.