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Nottingham Forest has been penalized with a four-point deduction by the Premier League for breaching Profitability and Sustainability Rules (PSR).

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As a result of the deduction, the East Midlands club will drop from 17th place into the relegation zone with 21 points, trailing Luton Town by one point, who will consequently rise out of the bottom three.

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A statement released by the Premier League on Monday stated: “An independent Commission has applied an immediate four-point deduction to Nottingham Forest FC for a breach of the Premier League’s Profitability and Sustainability Rules (PSRs) for the period ending Season 2022/23.

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“Nottingham Forest was referred to an independent Commission on 15 January, following an admission by the club that it had breached the relevant PSR threshold of £61 million by £34.5 million. The threshold was lower than £105 million as the club spent two seasons of the assessment period in the EFL Championship. The case was heard in accordance with new Premier League Rules, which provide an expedited timetable for PSR cases to be resolved in the same season the complaint is issued.

“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.”

In response, Nottingham Forest issued their own statement expressing disappointment with the decision of the Commission and thanked them for addressing the matter promptly. They emphasized the importance of resolving charges in the same season they are issued to uphold the integrity of the league.

The Guardian first reported that Forest admitted to the breach but indicated their intention to appeal the decision.

Forest’s defense centered around the sale of academy product Brennan Johnson, arguing that their approach to selling him was in line with sustainability goals. However, an independent panel dismissed their defense. Forest also contended that their losses were necessary for vital investment in the playing squad to avoid relegation.

Forest is not the only club facing consequences for PSR breaches this season. Everton initially received a ten-point deduction, later reduced to six on appeal, and they await the verdict of another charge. Both Forest and Everton continue to battle against relegation, with the latter just a point from safety behind Luton.

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