Nottingham Forest
Nottingham Forest recently faced a significant setback with a four-point deduction in the 2023/24 season due to breaching the Profitability and Sustainability Regulations (PSR). The sanction was imposed because the club exceeded its permitted threshold of losses over a rolling three-year period. However, former Crystal Palace chairman Simon Jordan has voiced his concerns, arguing that the punishment was unjust. He contended that the timeframe considered included Forest’s period in the Championship, which he believes should not have been factored into the Premier League’s financial assessments.
Simon Jordan said: “I’m happier with little governance and regulation over business and sport. The big area which needed to be attacked was wages, but the genie is out of the bottle. Why it works in the NFL (American football) is that they own that league; no other country has similar leagues. Sustainability is the most ridiculous phrase ever coined. When you look at the owners in the Premier League, sustainability doesn’t form their thinking. It’s a box ticked. Some owners are nation states.”
He continued: “Massively (changed my mind) over the last few years because it doesn’t work. My original perception was that it would suppress the cost of transfers and the cost of wages – it has done neither. I want a salary cap, but the genie is out of the bottle. All you would do is allow other leagues to widen the gaps and provide more opportunities.”
Jordan added: “If you’re Aston Villa, Newcastle, or Nottingham Forest, how do you get to where Manchester United, Manchester City, Chelsea, Arsenal, and Tottenham are? The answer is you can’t, or you have to wait several generations to achieve it. If we are going to keep some sort of governance, it needs to be adjusted to circumstances. You should be able to have the same losses as the other Premier League clubs. Nottingham Forest wouldn’t have been sanctioned because they were carrying losses from the Championship.”
He concluded: “If you want PSR, stick it in the Championship. They need it. The Premier League does not need it. If I was confronted with the options, I’d rather take the 85 percent. Article continues below As long as there is a fallback position – for example, perhaps having changes in how clubs are financed. Bonds could be put in place in case an owner changes their mind so the club is not in jeopardy.”
Jordan’s comments have reignited the debate over the effectiveness of PSR in the Premier League. His perspective highlights the challenges faced by clubs like Nottingham Forest, which struggle to compete financially with the league’s elite due to restrictive financial regulations. He advocates for more flexible governance that considers the unique circumstances of each club, particularly those transitioning from the Championship to the Premier League.
The discussion around PSR and financial governance in football is complex, involving the balance between maintaining financial stability and allowing clubs the freedom to invest and compete. Jordan’s call for creative thinking and potential reforms, such as implementing bonds to safeguard clubs’ futures, underscores the need for ongoing dialogue about the best way to manage financial regulations in the sport.
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