Nottingham Forest drop into relegation zone after suffering four-point deduction

Nottingham Forest manager Nuno Espirito Santo on the bench ahead of a game against Luton Town
Nottingham Forest manager Nuno Espirito Santo on the bench ahead of a game against Luton Town (Image credit: Getty Images)

The fight to avoid relegation has taken a fresh turn after Nottingham Forest were deducted four points for breaching the Premier League's profit and sustainability rules.

The punishment sees Forest drop into 18th place, a point below Luton Town, who are safe as the table stands.

Although Premier League clubs are allowed to lose £105 million over a three-year period, Forest’s permitted losses were limited to £61m because they spent two of those years in the Championship.

Upon their long-awaited return to the top division in 2022, they spent heavily to strengthen their squad, signing 32 players in total last season.

Morgan Gibbs-White, who joined Forest for a club record fee of £25m

Morgan Gibbs-White, who joined Forest for a club record fee of £25m (Image credit: Getty Images)

That huge outlay left Forest in danger of exceeding their permitted losses unless they could sell star player Brennan Johnson for a substantial fee.

Forest admitted the charge but argued that they had waited until the end of the transfer window to sell Johnson to Tottenham Hotspur in order to maximise the price they received for the academy graduate.

Rather than accepting a £30m offer from Brentford, that could have been booked as pure profit in last year's accounts, they held out until September and received £47.5m instead.

An independent panel rejected Forest's argument that this was the right decision to take for the club's long-term sustainability.

Tottenham's Brennan Johnson battles with Forest's Moussa Niakhate on his return to the City Ground

Tottenham's Brennan Johnson battles with Forest's Moussa Niakhate on his return to the City Ground (Image credit: Getty Images)

What next for Nottingham Forest?

An appeal is expected as Forest fight to avoid a costly and damaging relegation back to the Championship.

There are nine games left for Nuno Espirito Santo's side to drag themselves out of trouble but they have won just three times since he took over in December.

In November, Everton were deducted 10 points, which was reduced to six on appeal, for breaching the same rules.

Forest were only behind Everton on goal difference, but now trail them by four points after the Premier League's latest verdict.

More Premier League stories

'I don't think he has a clue' Chelsea make Mauricio Pochettino decision amid claims he DOES NOT know his best team: report

Liverpool players’ choice for next manager named, as Xabi Alonso is NOT the dressing room’s pick: report

Arsenal report: Victor Osimhen transfer ON, with Gunners now ahead of Chelsea in the race

Sean Cole
Writer

Sean Cole is a freelance journalist. He has written for FourFourTwo, BBC Sport and When Saturday Comes among others. A Birmingham City supporter and staunch Nikola Zigic advocate, he once scored a hat-trick at St. Andrew’s (in a half-time game). He also has far too many football shirts and spends far too much time reading the Wikipedia pages of obscure players.

Read more
MANCHESTER, ENGLAND - DECEMBER 4: Ilkay Gundogan of Manchester City and Morgan Gibbs-White of Nottingham Forest in action during the Premier League match between Manchester City FC and Nottingham Forest FC at Etihad Stadium on December 04, 2024 in Manchester, England. (Photo by Visionhaus/Getty Images)
'Nottingham Forest won't qualify for Champions League - Manchester City will come back': Ex-Premier League star makes strong prediction for final table
Sky Sports pundit Jamie Carragher has issued a bold claim regarding Liverpool's chances at success this season
‘If they beat Liverpool, then they are in the title race!’ - Jamie Carragher makes outlandish claim on in-form Nottingham Forest
Sheffield United Bramall Lane
Explained: Why Sheffield United have been deducted two points this season
NOTTINGHAM, ENGLAND - AUGUST 31: Chris Wood of Nottingham Forest celebrates scoring his team's first goal with team mate Callum Hudson-Odoi during the Premier League match between Nottingham Forest FC and Wolverhampton Wanderers FC at City Ground on August 31, 2024 in Nottingham, England. (Photo by Shaun Botterill/Getty Images)
Nottingham Forest set for major stadium upgrade, ahead of possible European adventure
Taiwo Awoniyi of Nottingham Forest is under pressure from Lewis Hall of Newcastle United during the Premier League match between Nottingham Forest and Newcastle United at the City Ground in Nottingham, United Kingdom, on November 10, 2024.
Watch Newcastle v Nottingham Forest: Live streams, TV channels for Premier League Super Sunday clash
Manchester City's Jeremy Doku takes on Nottingham Forest's Ola Aina during the Premier League match at the Etihad Stadium in Manchester on 4 December, 2024
The race for the Champions League is as tight as ever as Nottingham Forest face Manchester City in the Premier League
Latest in Stories
Manchester City manager Pep Guardiola is expected to sanction plenty of sales this summer
When does the summer transfer window open?
Arne Slot and Mikel Arteta could both do with improving their respective attacks this summer
Arsenal to make bold move for Liverpool star with uncertain Anfield future: report
LONDON, ENGLAND - MARCH 21: Phil Foden of England reacts during the FIFA World Cup 2026 European Qualifier between England and Albania at Wembley Stadium on March 21, 2025 in London, England. (Photo by Eddie Keogh - The FA/The FA via Getty Images)
'When I see Phil Foden play, he just seems like a shy lad - that holds him back a little bit. He has been tried in every position, but he just hasn’t performed': Ex-England star makes bold claim about Manchester City man
Arsenal's William Saliba and Gabriel Magalhaes embrace each other in celebration at full-time of the Premier League match against Wolverhampton Wanderers at Molineux on 25 January, 2025
Arsenal face losing Gabriel AND William Saliba, as new fears arise: report
Kevin De Bruyne of Man City in action during the Premier League match between Manchester City FC and Ipswich Town FC at Etihad Stadium on August 24, 2024 in Manchester, England.
Kevin De Bruyne touted for shock move to South American giants: report
LEVERKUSEN, GERMANY - MAY 18: Jose Mourinho, Head Coach of AS Roma, celebrates after the UEFA Europa League semi-final second leg match between Bayer 04 Leverkusen and AS Roma at BayArena on May 18, 2023 in Leverkusen, Germany. (Photo by Lars Baron/Getty Images)
Jose Mourinho planning Premier League raid for superstar: report
Latest in News
Arne Slot and Mikel Arteta could both do with improving their respective attacks this summer
Arsenal to make bold move for Liverpool star with uncertain Anfield future: report
LONDON, ENGLAND - MARCH 21: Phil Foden of England reacts during the FIFA World Cup 2026 European Qualifier between England and Albania at Wembley Stadium on March 21, 2025 in London, England. (Photo by Eddie Keogh - The FA/The FA via Getty Images)
'When I see Phil Foden play, he just seems like a shy lad - that holds him back a little bit. He has been tried in every position, but he just hasn’t performed': Ex-England star makes bold claim about Manchester City man
Arsenal's William Saliba and Gabriel Magalhaes embrace each other in celebration at full-time of the Premier League match against Wolverhampton Wanderers at Molineux on 25 January, 2025
Arsenal face losing Gabriel AND William Saliba, as new fears arise: report
Kevin De Bruyne of Man City in action during the Premier League match between Manchester City FC and Ipswich Town FC at Etihad Stadium on August 24, 2024 in Manchester, England.
Kevin De Bruyne touted for shock move to South American giants: report
LEVERKUSEN, GERMANY - MAY 18: Jose Mourinho, Head Coach of AS Roma, celebrates after the UEFA Europa League semi-final second leg match between Bayer 04 Leverkusen and AS Roma at BayArena on May 18, 2023 in Leverkusen, Germany. (Photo by Lars Baron/Getty Images)
Jose Mourinho planning Premier League raid for superstar: report
Jack Grealish
Manchester City report: Jack Grealish poised for European switch, with price revealed