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Nottingham Forest are reportedly the Premier League club at most risk of a points deduction.

In what may come as a surprise to fans, Manchester City aren’t the club at most risk of being slapped with a points deduction despite the final decision regarding their 115 charges by the Premier League for alleged financial breaches looming.

That’s because it’s reported that Forest will discover later this month whether they will become the third top-flight club to be charged with breaching the profitability and sustainability rules by the Premier League, after City’s mountain of charges and Everton’s 10-point deduction last year.

It’s been reported by The Telegraph that Forest are sailing close to the wind when it comes to a spending breach after signing 43 players since winning the Championship play-off final in May 2022. However, the club insist they have “fully complied” with reporting obligations and have enlisted leading sports lawyer Nick De Marco, who has an impressive record in football, especially against Financial Fair Play rulings, to argue their case.

Clubs are permitted to make a financial loss of £105million over a three-year period, with Forest reporting an annual loss of £45.6m in their most recent accounts. In the year ending June 2021, they recorded a loss of £34.4m, which was reduced to a loss of £15.5m before tax.

Nottingham Forest may be hit with a points deduction (Image: PA)Forest owner Evangelos Marinakis has invested over £250m on transfers (Image: Getty Images)

Forest’s Greek billionaire owner, Evangelos Marinakis, invested over £250m on transfer fees since his arrival and committed a further £11m worth of loans into shares for the financial year 2022-2023.

The core of the City Ground’s club’s argument revolves around the £47.5m sale of Wales international Brennan Johnson to Tottenham Hotspur on deadline day last summer, submitting their accounts ending June 30, 2023 last week.

Brennan Johnson left Forest on deadline day last summer for £47.5million (Image: Getty Images)

A statement from a spokesperson at Forest said: “The club has fully complied with its reporting obligations in respect of the Premier League’s revised profit and sustainability rules.

“Promotion to the Premier League will always create challenges, and the treatment of promotion bonuses is just one such example. The club approaches all such challenges with its long-term financial sustainability firmly in mind, as the Premier League rules intended.”