Nottingham Forest docked four points over financial breaches

Nottingham Forest have been given a four-point penalty for breaching the Premier League’s financial regulations, according to reports on Monday.

The Premier League charged Forest and Everton with breaches of the league’s profitability and sustainability rules in January.

If confirmed, Forest’s points deduction would plunge them into the relegation zone. Nuno Espirito Santo’s side, currently in 17th place on 25 points, would have just 21 points.

That would leave them in 18th place, one point behind Luton, who would climb out of the bottom three as a result of Forest’s deduction.

Everton were deducted 10 points in November, which was reduced to six on appeal.

The Goodison Park club are still waiting to discover if they will be hit with another points penalty relating to their second charge.

Premier League clubs can lose £105 million ($133.5 million) over three seasons, but because Forest spent two years of the assessment period in the Championship, their maximum loss was only permitted to be £61 million, according to the reports.

Forest could appeal the punishment, with the Premier League previously saying the process should “conclude no later than and if possible some time before 24 May”, which is five days after the final weekend of the top-flight season.