Nottingham Forest have been deducted four points for breaching the Premier League‘s Profit and Sustainability rules (PSR), the league announced on Monday, moving the side into the relegation zone.
Forest had 25 points after 29 games this season, but after Monday’s deduction they will drop to 21 points and move them into 18th place, one-point behind Luton Town.
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It is the second points deduction in the Premier League this season after Everton were docked 10 points — reduced to six after appeal — for PSR breaches and face further punishment for another breach of the same time period as Forest.
“The independent Commission determined the sanction following a two-day hearing this month, at which the club had the opportunity to detail a range of mitigating factors. The Commission found that the club had demonstrated ‘exceptional cooperation’ in its dealings with the Premier League throughout the process,” the Premier League said in a statement.
Premier League regulations stipulate that a club can lose no more than £105 million ($133.6m) over a three-year period.
The rules apply differently to Forest, owing to the fact that they were in the second-tier Championship until 2022, where clubs are permitted a maximum loss of £39m ($49.6m) across three seasons or £13m ($16.6m) per season, meaning their permissible losses over the last three campaigns would add up to £61m ($77.7m).
Forest were charged in January for breaching those regulations over the period ending in the 2022-23 season.
Upon their promotion ahead of the 2022-23 season, Forest broke the record for most transfers by a Premier League club in the close-season window with 21 separate deals completed.