An independent commission has decided to penalize Nottingham Forest with a four-point deduction due to financial irregularities in their accounts, leading to the team's relegation under Nuno Espirito Santo's management.

The English club was accused by the Premier League of breaking the league's financial fair play rules, and their case was sent to an independent commission in January, which has now imposed this sanction.

Reportedly, Forest exceeded the allowed losses of £105 million (€122 million) over a three-year period set by the competition. Having spent two seasons in the Championship (English second division), their limit was even lower, around £60 million.

The club expressed extreme disappointment with the decision, in its first reaction to the news. While acknowledging the swift handling of the case, Forest expressed shock at the tone and content of the allegations presented by the Premier League to the commission.

Despite claiming to have cooperated throughout the process, the team finds the outcome unexpected and believes it has damaged their trust in the competition.

Forest is the second Premier League team to receive a sanction for financial issues, after an independent commission penalized Everton with ten points in November for breaching fair play rules during the 2021-2022 season.

This penalty was reduced to six points in late February following an appeal by Everton. However, Everton may face further sanctions as they have been accused of another irregularity over a longer period of time.

If Forest decides to appeal, the case must be resolved by April 15th, a month before the Premier League concludes. The competition aims to have all appeals related to financial sanctions settled by May 24th, before the annual meeting where relegated clubs must submit their competition licenses.

The immediate effect of the sanction is that Nottingham Forest drops from 25 to 21 points and falls into the relegation zone, one point behind Luton Town. Since joining the Premier League in 2022, Forest has spent around €300 million on signing 42 players.

Everton Secure a Reduction In their Penalty Down to Six Points

The club's defense centered on the sale of Brennan Johnson to Tottenham Hotspur for £45 million, arguing that they had to wait until September 1st, 2023, to get a higher price for the forward. Had they sold him earlier and included him in the previous year's accounts, the sale price would have been lower.

"We were surprised that the Premier League did not take into account the club's unique circumstances and its mitigating actions," emphasized Forest in its statement, warning that competing in that category would be "extremely difficult, if not impossible" for newly promoted clubs if these criteria are maintained.

In addition to Everton and Forest, Manchester City is also under suspicion, having been accused in February last year of 115 financial irregularities. This case, being more complex and larger than that of Forest and Everton, has not yet been resolved.

Other clubs such as Wolverhampton Wanderers and Aston Villa recently published their financial reports for last season and avoided sanctions due to minor discrepancies.