Nottingham Forest 'handed four-point deduction for PSR breach'

The club were charged with the breach back in January, along with Everton, for going over the permitted losses any club can make over a three-year period.

Forest have spent upwards of £250m on new players since being promoted to the Premier League 18 months ago, and accepted the breach, but believed there were extenuating circumstances as to why.

Everton had already been handed an initial 10-point penalty - reduced to six on appeal - for a breach dating back a further year, and are still awaiting punishment over the second.

Many saw six points as the benchmark for how the Premier League were going to hand out their punishment for Forest, but the Guardian reports that the deduction is just four points.

Nevertheless, that still sends Nuno Espirito Santo's side into the bottom three, one point below Luton Town, who for the second time this season have moved out the relegation zone thanks to another side being docked points.

Official confirmation from the Premier League is expected to come sometime on Monday, and Forest are likely to appeal the decision.

Forest claimed that hanging onto Brennan Johnson until deadline day, before selling to Tottenham Hotspur for £47.5m was done in the spirit of abiding by the PSR rules, given that they made much more than they would have if they had sold him earlier in the window within the previous financial period.

Despite the club stating that bringing in £47.5m of pure profit from an academy product meant their approach was one of sustainability, the independent panel did not accept this defence.

Forest also felt hard done by given the fact that the permitted losses figure was lower for them because they spent two years in the Championship during the period in question.

That meant they could only lose £61m as opposed to the £105m Premier League clubs are allowed to, and they argued they were not being treated fairly, as heavy investment is required to make the step up against much stronger and richer competition.

As Forest are set to appeal, they do not have much time to lodge one, as April 15 is the date by which it must be heard and concluded - a much shorter window compared to how long Everton's process was dragged out.

Some factors must have been taken into consideration to only hand Forest a four-point penalty and not six though, because in the small print following confirmation that Everton's deduction would be reduced to six, it was stated that "a six-point deduction is the minimum but sufficient sanction required to achieve the aims of the PSR".

Everton's second charge has not yet been heard by the commission, as some reports claim they are set for another deduction, but much more minor compared to the six points they have already received.

Today's announcement leaves the Premier League relegation battle looking wide open, as Forest drop to 18th on 21 points, and Luton given a reprieve now on 22 points.

Everton sit 16th with 25 points, but that total is not currently set in stone, while Brentford are still in some danger a place and a point above the Toffees.

Burnley's win over the Bees on Saturday has given them a fighting chance, but they remain five points adrift of safety, with bottom-of-the-table Sheffield United three points further back.