The Premier League announced on Monday that Nottingham Forest and Everton will lose points as a result of the teams’ violations of the profitability and sustainability regulations (PSR).

Due to their financial mismanagement in the 2020–21 season, Everton was already docked ten points this year, sending them into the relegation zone.

According to the Premier League, the two teams have now been referred to the chair of the Judicial Panel, who will name an impartial commission to decide on the proper punishment.

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According to the Premier League’s Financial Fair Play regulations, clubs are permitted to lose a maximum of 105 million pounds ($133.63 million) over a three-year period.

“Everton can assure its fans that it will continue to defend its position during the ongoing appeal and, should it be required to do so, at any future commission – and that the impact on supporters will be reflected as part of that process,” Everton said.

The Merseyside club have filed an appeal against their initial points deduction, which they labelled “wholly disproportionate and unjust”.

Forest, who have not previously run afoul of the regulations, become the third club to have been charged by the Premier League, following Everton and champions Manchester City.

“The club intends to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution,” Forest said in a statement.

The East Midlands team was in the Championship’s second tier until 2022. In this division, clubs are allowed to lose up to 39 million pounds over the course of three seasons, or 13 million pounds each. As a result, their total allowable losses over the previous three campaigns would have been 61 million pounds.

Forest broke the record for the most moves made by a Premier League team in the close season window with eleven, after they were promoted ahead of the 2022–2023 campaign.

In addition, Manchester City was sent to an independent commission earlier this year regarding over 100 suspected violations of financial regulations since the team was purchased by the City Football Group of Abu Dhabi in 2008. In that case, a verdict has not yet been rendered.

There has been previous docking of points for clubs in the top flight of England. In 1997, Middlesbrough received three points for missing a fixture, and in 2010 Portsmouth received nine points for going into administration.