Nottingham Forest’s challenge against a Premier League sanction involving a four-point deduction for violating profitability and sustainability rules (PSR) has been dismissed.

Following the penalty’s imposition in March, Forest expressed “extreme disappointment,” arguing that the spending constraints imposed on promoted clubs undermined the league’s “integrity and competitiveness.” The club contended that their decision to sell Brennan Johnson two months after the PSR deadline should serve as a mitigating factor, warranting a suspension of the points deduction. However, the independent appeal board rebuffed these arguments, stating, “We reject all the criticisms made by the club of the commission’s approach and reasoning.”

Forest exceeded the permitted losses of £61 million by £34.5 million. While Premier League clubs are allowed a £105 million loss over a three-year span, Forest’s limit was capped at £61 million due to spending two years in the Championship during the period. Each season spent in the English Football League (EFL) diminishes clubs’ permissible losses by £22 million across a three-year accounting cycle.

The Premier League clarified, “The club argued that the independent commission committed an error in not treating its sale of a high-profile player shortly after the assessment period as a mitigating factor, and that it committed a further error in electing not to suspend some or all of the points deduction it imposed. Each of these grounds was rejected by the appeal board, which found the independent commission was entitled to immediately impose the sanction it did. The four-point deduction will therefore remain in place.”