Nottingham Forest deducted four points for financial rules breach

Nottingham Forest have had four points deducted for breaching the Premier League's Profit and Sustainability Rules (PSR), the league announced on Monday, moving the team 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 put them in 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 lost 10 points – reduced to six after appeal – for breaching the PSR and facing further sanctions for another breach over the course of from the same period as Forest.

The independent commission determined the sanction following a two-day hearing this month, during which the club had the opportunity to detail a series of mitigating factors. The commission found that the club had shown “exceptional cooperation” in its dealings with the Premier League throughout the process,” the Premier League said in a statement.

The independent commission's report said Forest's charge warranted a six-point penalty, but this was reduced to four points after mitigation.

Premier League regulations state that a club cannot lose more than £105 million ($133.6 million) over a three-year period.

The rules apply differently to Forest, due to the fact they were in the second-tier Championship until 2022, where clubs are entitled to a maximum loss of £39 million ($49.6 million ) over three seasons or £13 million ($16.6 million) per season, meaning their allowed losses over the last three campaigns would amount to £61 million ($77.7 million) ).

Forest were charged in January with breaching these regulations during the period ending with the 2022-23 season.

During their promotion ahead of the 2022-23 season, Forest broke the record for the most transfers by a Premier League club during the closing window with 21 separate deals completed.