Finance expert explains why Forest were docked four points
Football finance expert Kieran Maguire explains why Nottingham Forest were docked four points for PL breaches
Transcript
00:00 Now, in the case of Nottingham Forest, they were allowed to lose a maximum of £61 million.
00:06 That's because they spent one year in the Premier League in which they can lose £35
00:11 million and two years in the Championship in which they can lose £13 million a year.
00:16 They sent in their accounts to the Premier League by the 31st December.
00:20 Premier League took a look at them and says, "You're way over the limit."
00:25 And in the view of the Premier League, they're around about £34-£35 million over that limit.
00:30 So therefore, the Premier League says, "We're going to appoint a commission and they're
00:35 going to judge whether or not you're in breach.
00:39 And if you are in breach, we're going to give you a penalty."
00:41 So that's where we are.
00:43 We've had the announcement from the commission today.
00:47 And what they've said is that Forest have been given a three-point penalty for breaking
00:52 the rules.
00:53 Another three points for going so far over the limit.
00:58 But because Forest have cooperated and made the life of the commission relatively straightforward,
01:05 we're going to effectively knock off two points for good behaviour.
01:09 So that's why we've ended up with this final deduction of four points compared to Everton
01:14 6.