Nottingham Forest handed ‘non-starter’ FFP update as points deductions scrutinised

Premier League teams that exceed player spending limitations have been informed that they would continue to face ‘significant points sanctions’ in the future.

According to reports published last week, plans are in the works to implement a “luxury tax” to replace points fines levied on Nottingham Forest and Everton this season.

Forest are now appealing their four-point penalty, while Everton has been fined twice for breaking top-flight profitability and sustainability criteria, losing eight points in total.

However, a Sky Sports “exclusive” now alleges that clubs that violate the Premier League’s financial rules should expect to face future point reductions.

Top-flight teams are debating squad spending limitations at a shareholders meeting in London today, but while some support exists for the “luxury tax” plan, which would punish clubs that break the rules with a substantial punishment, it is understood that the majority are opposed.

 

 

According to Sky’s Rob Dorsett, “the majority–and the Premier League itself–are adamant that the idea is a non-starter.” The danger is that it will lead to the richest teams spending vast sums on players without limit, resulting in massive player wage and transfer fee inflation.

“As a result, Sky Sports News understands a ‘luxury tax’ is not on the agenda.”

Instead, the meeting is thought to look at methods to harmonize Premier League rules with those that have already been established by UEFA.

At the moment, Premier League clubs are in breach of PSR if their losses over a three-year period surpass £105 million, which is reduced if they were in the EFL at any point during the three-year cycle. For example, Forest’s maximum loss was limited to £61 million because they spent two years of the assessment period in the Championship.

PSR has placed a large cloud over the season, which may not lift until after the campaign is done, perhaps jeopardising a relegation battle involving both Everton and Forest.

While the verdict of Forest’s appeal is likely before the season concludes, that may not be the case with Everton, so clubs could have finished all matches and yet not know for sure who is going down.