Nottingham Forest are expected to once again find themselves near the Profit and Sustainability (PSR) limit this season, following their previous breach.
Finance expert Stefan Borson highlighted the financial pressures facing the club, telling Football Insider that Forest’s wage bill remains “very big” in relation to their overall revenue.
Last season, Forest were hit with a four-point deduction after breaching the Premier League’s spending rules, which cap allowable losses at £105 million over a rolling three-year period.
Although they narrowly avoided a similar situation for the 2023-24 season, it required last-minute player sales to stay within the regulations.
The sales of Odysseas Vlachodimos, Orel Mangala, and Moussa Niakhate before the June 30 accounting deadline proved crucial in helping the club avoid another breach.
These transfers, including Vlachodimos’ £20 million move to Newcastle, provided a financial boost that helped keep them compliant.
Forest’s financial results for the 2022-23 season showed a record revenue of £155 million, yet their wage bill stood at an eye-watering £145 million, leaving little room for error under the PSR framework.
Borson believes Forest will likely face similar challenges this season due to their financial structure.
“I still think it must be quite tight on PSR,” Borson explained to Football Insider.
“I haven’t done the numbers, but they did breach for 2022-23, and we know for 2023-24 they were right on the edge.
“I am sure they were the right side of it, but it was only after selling the goalkeeper Vlachodimos to Newcastle for £20million.
“That somehow gave them a profit on a player that barely ever played for them and was 30.
“People can judge what was going on with that deal, but that got them through.
“The bottom line is, they were close for 2023-24.
“If you were close for 2023-24, then you are almost certainly close for 2024-25 because they have got a very big wage bill relative to their revenue.”
Forest’s ongoing efforts to stay within PSR limits will likely be a key focus as they navigate another season of financial challenges.
