Nottingham Forest were hit with a points deduction this week for breaching the Premier League’s financial rules and regulations.
The Reds are the second top-flight club to be sanctioned this season, following on from Everton’s initial ten-point deduction, which was revised down to six upon appeal.
Forest, who now sit third from bottom in the relegation zone after four points were taken away, are likely to appeal their punishment, too.
Meanwhile, there is much consternation about why these two clubs have been punished for breaking Profit and Sustainability Rules (PSR), while Manchester City remain untouched despite having 115 charges hanging over their head.
But there is a simple explanation for this.
Why did Forest and Everton receive points deductions?
The Premier League have spending rules in place so that clubs do not go into financial meltdown, a la Leeds United in the mid-Noughties.
Top-flight clubs are permitted to make ‘allowable’ losses of £5 million per year on average over a three-year period. That figure increases to £35m per year with owner investment.
The Premier League know the losses accrued by clubs as they have access to the accounts; clubs found to have spent too much money are subsequently charged.
Forest and Everton exceeded the spending limit and their punishments were determined by an independent commission.
What about Man City?
Man City’s case is entirely different. It is alleged they hid payments and didn’t cooperate with the Premier League’s investigation, which the club denies.
It is an unprecedented level of charges and it stills need to be proved that City did what they have been accused of.
The complicated nature of the charge sheet is why no punishment has been meted out to the Premier League champions yet.
It is not yet known when City’s punishment, if any, will be revealed, but an independent commission will hear the proceedings in a private and confidential setting.
Will there be more sanctions this season?
It is expected that Everton will receive another sanction this season after they were charged a second time for PSR breaches in January.
They were charged at the same time as Forest, but their case is yet to be heard. If the Toffees were to receive another points deduction they would have the right to appeal.
Hearings for PSR breaches must be completed by 5 April and a decision reached by 12 April at the latest. Clubs then have seven days to appeal.
Appeals must be concluded by 24 May – after the final day of the Premier League campaign, which is 19 May this year.
The reason why Everton are at risk of being sanctioned twice in the same season is that the Premier League clubs decided the process had to be sped up, meaning the Merseyside outfit have ended up with charges for two rolling three-year periods.
