Forest face Financial Fair Play sanctions after filing £17m losses last season

By Laurie Whitwell

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Nottingham Forest face the prospect of sanction from the Football League after filing £17million losses for the 2012/13 campaign in breach of Financial Fair Play regulations.

New rules come into force from December which limit clubs to maximum £8m losses with greater deficits punished by transfer embargo. Teams failing to meet guidelines who achieve promotion to the Barclays Premier League will be heavily fined.

Glum viewing: Nottingham Forest, owned by Fawaz Al Hasawi (left), filed £17million losses last season

Glum viewing: Nottingham Forest, owned by Fawaz Al Hasawi (left), filed £17million losses last season

From bad to worse: Forest manager Billy Davies was handed a five-match ban on Tuesday for abusing a referee

From bad to worse: Forest manager Billy Davies was handed a five-match ban on Tuesday for abusing a referee

Forest still have until the end of this year to get their accounts in order and Kuwaiti owner Fawaz Al-Hasawi last month said a sponsorship deal from his homeland would bridge the gap.

‘I don’t envisage any fines,’ he said. ‘We are doing it right with the Fair Play.’

 

But the Football League have said inflated deals will not be tolerated and any sponsorships must match market value.

Forest, fifth in the Championship, posted a loss of just more than £17m for last season, up from £11.6m the previous year.

Focused look: Forest have their sights on promotion to the Premier League with the club currently fifth

Focused look: Forest have their sights on promotion to the Premier League with the club currently fifth

Setback: In their last Championship encounter Forest were thrashed 4-1 by promotion rivals Wigan

Setback: In their last Championship encounter Forest were thrashed 4-1 by promotion rivals Wigan

Turnover fell by £300,000 to £14.4m while the wage bill rose 20 per cent to £21m.

The 2012/13 season was the first under Al-Hawasi family ownership after the death of previous benefactor Nigel Doughty. The accounts revealed of the £85m owed to Doughty’s estate, £65m was converted to equity and £20m was paid off by a loan from the Al-Hawasis.

In total, the Al-Hawasi family are owed £35m in interest free loans, only repayable when the club possesses the financial ability.

Giantkillers: As well as good league form, Forest dumped West Ham out of the FA Cup emphatically 5-0

Giantkillers: As well as good league form, Forest dumped West Ham out of the FA Cup emphatically 5-0

Former glories: Under their iconic manager Brian Clough, Forest enjoyed a trophy-laden spell

Former glories: Under their iconic manager Brian Clough, Forest enjoyed a trophy-laden spell

The comments below have not been moderated.

I will only believe in FPP if proper punishments are actually carried out. Football authorities don't exactly have much credibility in these matters, do they. But the one thing that won't change in Forest's case is Billy Davies moaning about not having enough players despite wasting loads of money. He's done it at every club he's managed so that if/when he fails he has a convenient excuse to bail out.

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The Forest meltdown just gets better and better hahahahahahahaha

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Promoted teams who fail FFP get huge payments from Sky that will dwarf their fines. So what's the point. Deduct them 20 points straight off.

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Man Utds debt could buy all of Nottingham!!

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Ban Liverpool their loss was treble.

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For the benefit of Paul - - - - Paul, the football league run to different financial criteria than the Premier League, which is fairly sensible given that the money in the Premier League is ten or twenty times higher than it is in the Championship and below. Come, think about it.....

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im sure they'll take the heavy fine if they get the so called riches of the prem. 17m to the 100's of millions being lost by prem clubs...... its all there in black and white a rule for the rich clubs and bye bye anyone else.

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They misspelled Al-Hasawi's name several times. It's Al-Hasawi not Al-Hawasi.

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Did they misspell bankrupt?

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At least the important issue was cleared up by Omar.... well done mate, financial fair play n corruption in football is one thing.... spelling, on the other hand.... Unacceptable. ...

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They misspelled Al-Hasawi several times in the article. Its Al Hasawi not Al-Hawasi.

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£17m?!!! Hang on!! Explain this properly.. Premier league clubs have just posted loses of nearly £50m!! What about them?!!

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