Nottingham Forest have been embroiled in Profit and Sustainability drama since their return to the Premier League in 2022.
Most famously, Forest were deducted four points for a PSR breach in March 2024, which saw Evangelos Marinakis forced into action to sell players for the next PSR window.
Forest were expected to pass PSR regulations thanks to the sales of the likes of Orel Mangala and Gustavo Scarpa, with even Murillo rumoured to be sold to comply with PSR which thankfully never happened.
Enough was done to make sure Forest were within the allowed losses limit, meaning that Nuno Espirito Santo could go into the season without the headache of losing some of his top stars.
Clearly, the PSR rules provide the Forest owner with a lot to think about so the news that the Premier League would be switching to a different system would’ve been music to his ears, but that switch has just been delayed.
Premier League PSR rules are to remain for next season
According to a report by Sky Sports, the controversial financial rulings will stay for another season, due to a delay in the new Squad Cost Ratio system being ready.
The report said: “They [PSR] were set to be replaced by Squad Cost Ratio (SCR) rules in the summer but Premier League clubs agreed at a meeting in London on Thursday to stick with PSR for at least one more season.
“PSR limits clubs to losses of £105m over three years whereas SCR, which is modelled on UEFA’s financial rules, limits clubs to spending 85 per cent of their revenue on football costs.”
Whilst arguably frustrating for Marinakis, the new SCR system would also bring potential new concerns to the table, highlighting that no financial system is perfect.
The report continued: “SCR would also feature “anchoring”, limiting how much clubs could spend on player wages and transfers to five times the revenue the league’s bottom club receives in broadcast and prize money.
“For example, Sheffield United received £110m last season. That means, under SCR, the spending limit would be five times £110m so £550m.”
Forest are by no means the biggest revenue maker in the Premier League, but the limitations to what Marinakis can spend on his Forest squad will surely be equally irritating.
However, it’s not all doom and gloom at the City Ground, as Forest are in a reasonably strong position in terms of PSR for its potential final season.
Nottingham Forest should be in a stronger PSR position
It will certainly soften the PSR blow for Marinakis that Forest had a net spend of just £16m for this season, which will put them in a much better position to stave off any concerns about the financial rules this summer.
Another PSR-based boost for Forest can be found when reflecting on the club accounts for the 2022/23 season, Forest’s first year back in the Premier League.
According to a report by The Athletic, Forest registered a £61.5 million loss in the 2022/23 season but crucially, that figure will not play a factor in the next PSR calculations.
PSR works on a three-year accounting period so for the 2025/26 season, that £61.5 million figure will be taken out of the calculations which will be a sigh of relief for Marinakis.
Coupled with the low net spend of this season, Forest should be in a more comfortable position for the upcoming window should Espirito Santo require additions to his squad, with Forest’s interest in Richard Rios much more possible due to the PSR situation.
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