Nottingham Forest

Premier League charge date approaching: FFP’s fate of the Reds

Published

8 months ago

January 14, 2024

Nottingham Forest and their Premier League rivals will learn on Monday whether they have been charged for breaching Profit and Sustainability Rules (PSR). Numerous clubs are expected to be close to, if not over, the loss limit of £105m over three seasons.

New guidelines have been brought in to fast-track PSR decisions in an effort to avoid a situation such as Everton’s points deduction being imposed in the season after the club were charged with a breach. The Toffees were found to have breached guidelines by a margin of £20m, resulting in them being docked 10 points this term. They are appealing against the decision.

Last week, The Times quoted football finance expert Kieran Maguire as saying Forest are “close to the limit” of Financial Fair Play regulations – and could face sanctions.

According to the Telegraph, the Reds have appointed a leading sports lawyer as they look to argue their case, insisting they have “fully complied” with their obligations. Nick De Marco, a KC with Blackstone Chambers in London, is said to have an established record dealing with football, and especially Financial Fair Play.

A Forest spokesman has said: “The club has fully complied with its reporting obligations in respect of the Premier League’s revised profit and sustainability rules. Promotion to the Premier League will always create challenges, and the treatment of promotion bonuses is just one such example. The club approaches all such challenges with its long-term financial sustainability firmly in mind, as the Premier League rules intended.”

All clubs had to submit their accounts for 2022/23 by December 31 — rather than in March as they had previously — with any breaches and subsequent charges set to be confirmed 14 days later. Any club that is charged will have a two-week period to respond.

A hearing by an independent commission must then be completed by early April with any appeal process to follow. The change of system is designed to ensure any basic breaches of the regulations are dealt with in time for punishments – such as points deductions – to be confirmed in the same season.

The Premier League have listed Friday, May 24 as a backstop date for any appeal which comes after the season ends on May 19. This date comes ahead of the league’s annual meeting.

Therefore, teams who are appealing against potential points deductions could complete the season not knowing their final league position or even what division they may be playing in the following season. Under current PSR rules, clubs are allowed to lose a maximum of £105m over three seasons, but certain costs can be deducted, such as investment in youth development, infrastructure, community and women’s football.