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 that 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