Nottingham Forest have been deducted four points for breaking Premier League financial rules.

The City Ground club admitted earlier this year to a breach of profit and sustainability rules (PSR), leading to them being referred to an independent commission to determine their punishment.

Subject to appeal, the points deduction drops Forest one point below Luton and into the relegation zone.

The charge relates to the three-year financial cycle completed at the end of the 2022-23 season, in which clubs are allowed to lose £105million.

Forest have spent £250m in signing 42 players since winning promotion to the top flight in the summer of 2022 with a squad largely made up of loan players and those about to become free agents.

Wales striker Brennan Johnson was sold to Tottenham at the end of last summer’s transfer window in a bid to make up the deficit in their accounts, but the deal going through on September 1 meant it ultimately did not apply to the financial cycle in question.

Any appeal must be concluded by April 15 as the Premier League looks to ensure any question marks over points deductions are answered by the end of the campaign.

Everton, already handed a ten-point deduction which was reduced to six for PSR breaches, are facing another punishment imminently for still failing to adhere to financial rules.

The Premier League are also expected to rule on the 115 charges facing Manchester City, which they deny, at a later date with some reports suggesting an initial outcome could be reached next year.