Why did Everton and Forest get different punishments for their rule breaches?

Last month the previously unheard of ‘Profit and Sustainability Rules’ reared its head again as another Premier League team was charged for financial breaches. Fresh on the heels of Everton successfully getting their points deduction reduced from 10 to six, it was Nottingham Forest who were charged for the same offence of exceeding allowed losses over a three-year period.

So, what punishment did Forest fall foul of? After all, Everton’s charges must set the precedent, and there were reasons for their deductions. But did the Premier League match the original 10 points, or the appealed six? Well, actually it was four, just to try and confuse everyone.

But how did they come to that figure? In short, who knows! A number of Evertonians were quick to point out the hypocrisy of Forest’s punishment – after all, Everton were docked 10 points for being £19.5m over the financial limit but Forest were deducted four points for being £34.5m over. Seemingly a lesser punishment for a worse crime.

Or was it? Because yes, the breach was higher, but the PSR Calculation Period for the three-year period for Forest included two years in the Championship. As such, the permitted loss for the period was only £61m, whereas a team in the Premier League for all three seasons would have been £105m.

This means that Forest’s losses were £95.5m compared to Everton’s £124.5m, so in reality, was considerably less. Factor in where they were at the start of the season they won promotion – bottom of the Championship – and other arguments that they hadn’t benefitted from previous Parachute Payments and almost their entire promotion squad was made up of loan players that needed replacing, Forest seem to believe that they have a valid appeal process based upon claims that to successfully charge them would send out a poor message to clubs aspiring to reach the Premier League.

We shall await and see what happens, especially as it’s now April, and only goal difference keeps them out of the relegation zone. Hopefully, relegation matters can be decided on the pitch rather than the post season courtroom. The same can be said for promotion too. Leicester City have also been charged under PSR, despite now finding themselves in the Championship.

The accounts have yet to be made public, but with losses expected to be over the £105m threshold, the EFL have placed them under a transfer embargo with further punishments to be expected. What is yet to be known is whether punishments will be applied this season, potentially scuppering chances of promotion, or in a future Premier League season, which would potentially scupper any chances of survival.

Leicester have come out fighting though, vowing legal action if punished by either governing body.
A lot is still up in the air at the top end of the table. It would never happen in the Premier League would it? Man City and their 115 pending charges would suggest otherwise.