Forest handed four-point deduction for breaching Premier League’s financial rules
Forest handed four-point deduction for breaching Premier League's financial rules The Athletic
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Nottingham Forest Handed Four-Point Deduction for Breaching Premier League Rules
Nottingham Forest has received a four-point deduction from the Premier League due to a breach of the profitability and sustainability rules (PSRs). The club reported losses that exceeded the allowed amount over the three-year reporting cycle ending in the 2022-23 season, leading to their referral to an independent commission in January. Under the guidelines, Forest could have faced fines or point deductions for the breach, and their four-point deduction now places them in 18th position in the Premier League.
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This is the second Premier League team this season to receive a points deduction following a PSR breach, with Everton having 10 points docked in November. However, Everton’s penalty was later reduced to six points following an appeal. Everton could potentially face another points deduction this season after being charged alongside Forest with another breach of PSR rules in January.
Forest now have seven days to decide whether they will appeal against the sanction. The Premier League has set May 24 as the backstop date for any appeals, which is after the end of the season on May 19.
Statement from the Premier League
The Premier League released a statement saying, “An independent commission has applied an immediate four-point deduction to Nottingham Forest FC for a breach of the Premier League’s profitability and sustainability rules (PSRs) for the period ending season 2022/23. Nottingham Forest was referred to an independent commission on January 15, following an admission by the club that it had breached the relevant PSR threshold of £61 million by £34.5 million. The commission found that the club had demonstrated ‘exceptional cooperation’ in its dealings with the Premier League throughout the process.”
Statement from Nottingham Forest
Nottingham Forest issued a statement expressing their disappointment with the commission’s decision to impose a four-point sanction on the club. They criticized the Premier League’s submissions before the commission and stated that the decision raises concerns for all aspiring clubs. Forest believes that their high level of cooperation throughout the process was not reciprocated by the Premier League.
Background and Mitigating Factors
Forest were referred to the commission by the Premier League in January for an alleged breach of the PSR calculation for the three-year reporting period ending with the 2022-23 season. The club has signed over 40 players since their promotion in May 2022, with significant investment from owner Evangelos Marinakis. Forest argued that they worked within the regulations regarding allowable losses, with a key issue being the sale of Brennan Johnson to Tottenham Hotspur.
New guidelines have been introduced to fast-track PSR decisions and ensure timely punishments for breaches. All clubs had to submit their accounts for 2022-23 by December 31, with any breaches and subsequent charges confirmed 14 days later.
Profitability and Sustainability Rules
The Premier League assesses all clubs annually for their adherence to profitability and sustainability rules. Compliance is determined by each club’s PSR calculation, which is based on adjusted earnings before tax for the relevant assessment period. Clubs are allowed to lose a maximum of £105 million over three seasons, with certain costs deducted. Forest’s permitted losses are lower due to their time in the Football League, resulting in a threshold of £61 million.
Previous Cases and Impact
Forest is the third club to face action for breaching PSRs, following Everton’s two separate breaches and subsequent points deduction this season. Manchester City also faced over 100 charges last year, with the outcome of their case still pending. Chelsea self-reported incomplete financial information related to transactions under previous owner Roman Abramovich, resulting in a fine from UEFA. In the Premier League, only Middlesbrough and Portsmouth have previously received points deductions.
Analysis by Nottingham Forest Correspondent Paul Taylor
Nottingham Forest is frustrated and disappointed by the four-point deduction, which has dropped them into the relegation zone. The club is considering an appeal and believes they have worked closely with the Premier League throughout the process. While the punishment is seen as severe, Forest understands that it could have been worse. They now have a clearer picture of the challenge ahead as they aim to secure another season in the top flight under Nuno Espirito Santo.
SDGs, Targets, and Indicators
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SDG 8: Decent Work and Economic Growth
- Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance, and financial services for all
- Indicator 8.10.2: Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile money service provider
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SDG 10: Reduced Inequalities
- Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
- Indicator 10.2.1: Proportion of people living below 50 percent of median income, by age, sex, and persons with disabilities
Analysis
The article discusses Nottingham Forest’s four-point deduction in the Premier League due to a breach of the profitability and sustainability rules. Based on the content of the article, the following analysis can be made:
1. Which SDGs are addressed or connected to the issues highlighted in the article?
The issues highlighted in the article are connected to SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities).
2. What specific targets under those SDGs can be identified based on the article’s content?
Based on the article’s content, the specific targets that can be identified are:
- Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance, and financial services for all
- Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets:
- Indicator 8.10.2: Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile money service provider
- Indicator 10.2.1: Proportion of people living below 50 percent of median income, by age, sex, and persons with disabilities
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance, and financial services for all | Indicator 8.10.2: Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile money service provider |
| SDG 10: Reduced Inequalities | Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status | Indicator 10.2.1: Proportion of people living below 50 percent of median income, by age, sex, and persons with disabilities |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: theathletic.com
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