Why has the Premier League deducted Nottingham Forest points? How could the ruling affect Manchester City and Chelsea?

Nottingham Forest have been deducted four points for breaking the Premier League’s profit and sustainability rules. The Reds admitted to the breach, which was a knock-on effect of their wait to sell attacker Brennan Johnson last summer.

How did Johnson’s move to Spurs lead to Forest’s points deduction?

According to Forest, they rejected several offers - the highest of which was £40 million ($50.89 million) - from Premier League rivals Brentford before the end of June because they expected to receive higher bids later in the transfer window.

Tottenham Hotspur did indeed sign Johnson for £45 million ($57.25 million) at the start of September, but because the transfer was completed after 30 June, it isn’t included in Forest’s financial accounts for 2022/23, which is where the breach took place.

What are the Premier League’s FFP rules?

The Premier League’s Financial Fair Play (FFP) regulations state that clubs can have maximum losses of £105 million ($133.58 million) over three seasons, although Forest’s limit was £61 million ($77.61 million) because they had spent two years in the Championship, the English second tier. In 2022/23, they were found to have incurred losses of £95 million ($120.86 million), a figure which would’ve dropped below the threshold if they had sold Johnson before 30 June.

An independent committee dismissed their case and the four-point punishment was handed down, which they are expected to appeal.

As a result, Forest have dropped below Luton Town, who they drew with on Saturday, and into the relegation zone. The two-time European Cup winners are now third from bottom, one point from safety, with nine Premier League games left to play.

How does Forest’s case compare to City and Chelsea?

The ruling is another warning for Manchester City and Chelsea. Everton were already hit by a 10-point deduction earlier this season, although that was reduced to six points on appeal.

Both Nottingham Forest and The Toffees were guilty of one breach of FFP rules, which were relatively straightforward cases. City, on the other hand, have been charged with 115 breaches, which is significantly more complex for the Premier League to solve.

What punishments could Manchester City and Chelsea receive if found guilty?

There has been little indication as to when a hearing will take place, but the numbers involved suggest the Champions League holders could be heavily punished if found guilty.

An independent commission has the power to deduct points, as we’ve already seen, although they could suspend City from playing league matches, recommend that their league matches be replayed, order compensation to be paid, cancel or player registrations, issue a fine or even kick them out of the Premier League.

Chelsea are also thought to be in danger of breaching FFP rules, although they are significantly further behind. The Blues, who have already fined by UEFA for similar reasons, are currently being investigated by the Premier League but have yet to be charged.