Nottingham Forest has been facing issues adhering to the Premier League’s spending rules. This has all been in an attempt to establish themselves as one of the top teams in the league.
The team was spared relegation last season after receiving a four-point deduction for breaching the league’s profit and sustainability rules (PSR) in the 2022-23 season. However, things have improved in the 2023-24 season.
Nottingham Forest’s impressive rise in the Premier League has led to increased attention from fans and media alike, with some even daring to dream of a potential title challenge. This has greatly changed their betting odds this season on various betting platforms, including a full list of alternatives from Techopedia, such as sports betting sites outside of GamStop, according to Techopedia’s Vlad Grindu. At the start of the 2024-2025 season, they were considered unlikely contenders for the championship, with odds as long as 5000/1. However, their odds have dramatically shortened to 239/1, reflecting their impressive performance, including a six-game winning streak, propelling them to third position in the league.
Although Nuno Espirito Santo was thought to be nearing the limit for the 2023-24 season, the urgent sales of Odysseas Vlachodimos, Orel Mangala, and Moussa Niakhate before the 30 June accounting cutoff aided the team and guaranteed compliance with regulations. Through these agreements, the team managed to achieve a profit of approximately £100 million last season, resulting in a pre-tax profit of £10 million.
In comparison, the team made a £69 million loss in the 2022-23 season. In just one season, Nottingham Forest was able to post a record-breaking revenue for 2023-24 after their turnover increased from £155 million to £190 million. Finance expert Stefan Borson believes that the club’s “swap deals” last year were the main reason behind the team’s profitability.
Swap deals are more complex than straightforward sales. They involve the exchange of players between teams and often have additional financial considerations. While Nottingham Forest opted for swap deals to supplement their revenue, there are many other financial strategies and transfer mechanisms used in football. The sales or “swaps” and the consequent acquisition of £100 million have and will continue to significantly impact the team’s finances. This also means that they will be able to better comply with financial fair play regulations.
If the team qualifies for the Champions League this season, Nottingham Forest is expected to spend large sums of money in the upcoming transfer window to acquire the best possible players. Their prospects look good, as they are currently in third place on the Premier League table. There could be five potential Champions League spots on offer to top-flight clubs this season, and Nottingham Forest wants a spot.
Borson, a football insider consultant, believes that if Nottingham Forest were to qualify for the Champions League, it might be “transformational” for the team as a whole. While this is his opinion, he also states that the team’s PSR troubles are far from over. This is because the numbers they have declared are flattered by the £100 million in transfer profits. A large majority of this money came from player swaps (which, he adds, may or may not be acceptable according to UEFA rules). Whether or not they were allowed, the swaps certainly were profitable for the team.
Borson continues by stating that Nottingham Forest has more players that could be sold to other teams, offering the possibility to make a significant amount of money this season based on player sales. However, the players that could be sold are the same players that the team’s management will want to keep if they do qualify for the Champions League. So, there is only money to be made if they don’t achieve the success they are working towards.
While trying to comply with the profitability and sustainability rules, Nottingham Forest is also in an investment stage. This means that while they are open to selling players, they are also looking for players to add to the team in their pursuit of the Champions League title. As it stands currently, they are in a good position to qualify for the Champions League. If they do, Borson believes that the achievement will be transformative for the team, as well as their set of accounts. Therefore, there will be less focus on what they did for the 2023-24 season, and more emphasis will be placed on what they can do in the 2025-26 season, financially.
Additionally, the renewal of the manager’s contract could impact the team financially. Nottingham Forest have revealed that they are “desperate” to get Nuno to sign a long term deal, as he is currently nearing the final year of his contract. Nuno Espirito Santo signed a two and a half year agreement, replacing former team manager Steve Cooper in December 2023.
The surge in revenue will certainly aid the team in their plans, whether it be contract renewals or more player acquisitions. On a larger scale, it may even boost team morale and performance.
