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Everton, Forest ... are Man City next? What lies ahead for the Premier League's financial rules

Nottingham Forest have been thrust into the Premier League relegation zone after being hit with a four-point deduction for breaches of financial rules, that are becoming a dominant topic in the world's richest league.

Everton have also suffered a six-point deduction, reduced from 10 on appeal, to leave the Toffees fighting to prolong their 70-year status in the top flight.

The Premier League now faces the embarrassment of having relegation decided in tribunals after the season has finished, with the deadline for the appeals process coming five days after the final day of the campaign.

We take a look at the rules, why they are often criticised and what could come next: 

What are the rules?

Premier League clubs are allowed to lose a maximum of £105 million ($134 million) across a three-year assessment period.

However, for every season a club was in the second-tier Championship, that amount is reduced by £22 million.

Forest, therefore, were only permitted losses of £61 million as they were promoted back to the Premier League for the first time in 23 years in 2022.

There are a number of deductions allowed for spending on costs that are deemed to be in the general interest of the club and the game.

These include spending on infrastructure, youth development and women's football.

Why are they controversial?

Financial sustainability rules are designed to limit clubs to spend within the means of what they generate in revenue.

However, as a result they are often criticised for helping the established elite clubs maintain their privileged position as they make the most money thanks to larger stadiums, better commercial deals due to bigger fanbases and are regularly involved in lucrative European football.

Forest accused the Premier League

Read more on news24.com