Sport nationNottingham Forest Teetering on the Brink of Another Financial Breach: Expert Warns of Looming Points Deduction
Nottingham Forest’s precarious financial situation has raised concerns among experts, with finance guru Stefan Borson warning that the club is likely to find itself in hot water once again. Forest’s previous breach of the Premier League’s profit and sustainability regulations (PSR) resulted in a four-point deduction, and Borson believes that the club’s wage bill and revenue streams suggest that they will be close to exceeding the allowed limit for the current season.
The Premier League’s PSR rules dictate that clubs are only permitted to incur losses of up to £105 million over a rolling three-year period. Forest’s latest accounts for the 2022-23 season revealed a record revenue of £155 million, but also a substantial wage bill of £145 million. These figures have led Borson to express concerns that the club may be pushing the boundaries of the PSR regulations once again.
“I still think it must be quite tight on PSR,” Borson told Football Insider. “I haven’t done the numbers, but they did breach for 2022-23 and we know for 2023-24 they were right on the edge. Join the Football Insider WhatsApp channel to get all our exclusives and the breaking transfer news FIRST.
“I am sure they were the right side of it, but it was only after selling the goalkeeper Vlachodimos to Newcastle for £20 million. That somehow gave them a profit on a player that barely ever played for them and was 30. People can judge what was going on with that deal, but that got them through.
“The bottom line is, they were close for 2023-24. If you were close for 2023-24, then you are almost certainly close for 2024-25 because they have got a very big wage bill relative to their revenue.”
Borson’s warnings come as Forest continues to navigate the complexities of the Premier League’s financial regulations. The club’s previous breach resulted in a significant points deduction, and another infringement could have severe consequences for the team’s prospects.
As the season wears on, Forest’s financial situation will undoubtedly come under increasing scrutiny. With the Premier League’s financial regulators keeping a watchful eye on the club’s accounts, Forest will need to tread carefully to avoid another costly breach of the PSR regulations.
In conclusion, Nottingham Forest’s financial situation remains precarious, with expert Stefan Borson warning that the club is likely to find itself in breach of the Premier League’s profit and sustainability regulations once again. With the consequences of another breach potentially severe, Forest will need to exercise extreme caution in their financial dealings to avoid another points deduction.
Sport nation
Amina Umar