Why could Nottingham Forest become the second Premier League club to face a points deduction?

Nottingham Forest could become the second Premier League team to be hit with a points deduction as a result of Financial Fair Play (FFP) breaches this season. In November, Everton were docked 10 points after an independent Commission confirmed they had broken FFP regulations. The Toffees have recovered relatively well from the setback and are one place and one point outside the relegation zone, and now one of their potential rivals for the drop could find themselves in a similar predicament.

How much have Nottingham Forest lost in recent seasons?

British newspaper The Times have reported that Forest reported losses of £45.6 million ($57.58 million) in 2021-22, the season in which they were promoted to the English top flight, and £15.5 million ($19.57 million) the previous season. In both years, The Reds spent twice as much on salaries as they turned over.

How much are Premier League clubs permitted to lose?

The Premier League’s FFP rules state clubs are allowed maximum losses of £105 million ($132.66 million) over a period of three years, an average of £35 million ($44.22 million) per season. Recent changes mean charges for direct infringement of the rules can be processed on a fast-track basis, enabling points deductions to be swiftly handed out. Forest’s financial activity for 2023-24 could therefore carry them into trouble, while The Times claims FFP may not be done yet with Everton, who could be punished a second time for failing to comply with rules on profitability and sustainability.

According to the new rules, all clubs had to submit their 2022-23 accounts by 31 December, with potential charges to be announced by 14 January. Clubs will then have two weeks to respond to any charges issues, with an independent Commission required to hold a hearing before 8 April. Appeal processes must be completed before the end of the season,” as The Times explains.

How could this affect Manchester City and Chelsea?

The cases involving Manchester City and Chelsea, which have still to be resolved, are different, and more complex. The Premier League investigation into Pep Guardiola’s team remains in the hands of the independent Commission, who will decide whether or not they are guilty of 115 charges they are accused of, as well as hand out a potential sanction.

The Blues, meanwhile, are being looked into for possible financial irregularities during Roman Abramovich’s time as owner of the club. “Chelsea have made huge losses in recent seasons, but their transfer income would balance last season’s accounts,” says The Times.