Nottingham Forest have become the second Premier League club to be docked points for spending offences this season, with Everton also facing new sanctions.
Forest have been deducted four points after breaching the Premier League‘s profitability and sustainability rules, which sees them drop into the relegation zone.
The club, who are currently managed by Nuno Espirito Santo, fall below Luton into 18th, with their points total dropping from 25 to 21.
A number of reports on Monday relayed the news, with Forest expected to appeal the sanction – a verdict over which must be delivered before the end of the campaign.
It follows a previous 10-point deduction for Everton, which was later reduced to six following appeal, though Liverpool’s rivals could be sanctioned again.
Everton were charged, for the second time, alongside Forest in January, though they are not expected to learn of any punishment until next month.
Reports claim that Everton‘s case will be heard by an independent commission towards the end of this week, with rules stipulating that a verdict must then be made within seven days.
The situation comes after the introduction of profit and sustainability rules by the Premier League in 2013, which stipulate that clubs cannot post losses of more than £105 million over a period of three seasons.
However, the losses allowed for Forest were lower than that figure as part of that three-year period saw them playing in the Championship.
Forest were able to lose no more than £61 million between 2020/21 and 2022/23, with their heavy and prolific spending upon gaining promotion in 2022 playing a major part in their breaches.
The Nottingham club have signed no fewer than 42 players since returning to the top flight, with an outlay of around £250 million including the signings of ex-Liverpool duo Neco Williams (£17m) and Taiwo Awoniyi (£17.5m).