Nottingham Forest could’ve caused ‘catastrophic’ damage to the Premier League as finance expert makes claim
Nottingham Forest have had a tricky relationship with the Premier League regulations since promotion in 2022, but one financial expert believes that it could’ve been much worse.
On-pitch success goes a long way to disguising issues in the boardroom and with Forest only needing to finish 5th for Champions League qualification, the action on a matchday is doing more than enough of the talking.
However, there have been a number of wins at boardroom level for Evangelos Marinakis as the financial situation at the club has begun to improve, with Forest publishing a net spend of just £16m after the higher, necessary investment of the previous Premier League season.
This is a far cry from the situation of just a year ago as Forest were deducted four points for a PSR breach, emphasising the tricky relationship that Marinakis has had with the league in his attempts to establish Forest as a top-division staple.
Forest were unsuccessful in their appeal of the points deduction which only served to fuel the tension surrounding the club and the league, but this tension could’ve escalated into serious financial penalties for one side according to an expert in football governance.
Nottingham Forest could’ve sued the Premier League upon relegation
The prospect doesn’t seem likely anymore but when Nuno Espirito Santo was appointed Forest manager, the club were fighting against relegation which would’ve made any potential issues with Premier League rules even more complicated.
One rule that could’ve caused particular problems is the league’s Associated Party Transaction (APT) guidelines that prevent clubs from forming sponsorship deals with companies associated with their respective owners.
However, the APT rules have been deemed unlawful which has left many fans across the league wondering how much money their clubs missed out on, leading to finance guru Kieran Maguire being on hand to answer any questions.
On the Loaded Mag podcast discussing Newcastle United’s particular issue with the APT decision, Maguire raised a point about Forest, saying: “We were very, very lucky that some of the sides that have been promoted in the last two or three years have been so rubbish that they’ve gone straight down.
“Because if Forest or Everton had been relegated on the back of points deductions […] I think the potential financial consequences for the Premier League could’ve been absolutely catastrophic.”
In relation to the previously mentioned points deduction, Forest could’ve been relegated from the Premier League due to failing financial rules, despite the Forest owner being prevented from striking certain sponsorship deals due to regulations that have now been deemed unlawful.
Whether Nottingham Forest could have sued the Premier League
Marinakis could’ve seen this restriction to his sponsorship potential as a key reason why Forest failed the PSR regulations, potentially kickstarting a legal dispute with the Premier League.
Explaining the potential grounds for this legal challenge, TBR Football’s Adam Williams told Nottingham Forest News: “If Everton/Forest had points deductions that sent them down because APT rules meant they weren’t able to do deals with owner-linked companies at the rates they wanted.
“They might be entitled to sue for lost earnings because the 2021-24 rules have now been declared illegitimate.”
Realistically, Forest wouldn’t have been able to recoup the £35m PSR breach solely through APT sponsorships so talk of potential legal action against the Premier League would’ve been unlikely, but examples such as this prove that clubs can find ways to sue the division with such complicated rules.
With the Premier League’s PSR replacement regulations being delayed, Marinakis and Forest will continue to tread carefully with the knowledge of the fragility of some of the rules in play.
