Nottingham Forest issued a new FFP warning on the Premier League penalties threat.
Nottingham Forest and their Premier League opponents may face fines from the football governing body if they seek sponsorship deals or pursue player transfers with clubs or groups linked to their owners, according to reports.
Forest, through owner Evangelos Marinakis, who has been in charge of the club since spring 2017, has formed a cooperation with the Greek businessman’s other abroad clubs, which include Olympiacos, a serial champion in his own country, and Rio Ave in Portugal.
The initial rules have been changed, making them more strict than previously. They were implemented to prevent top-tier clubs from increasing revenue and strengthening their squads directly through their owners by ensuring that transfers between clubs in the same ownership group remain at market value and that they do not earn excessive amounts of money through sponsorship.
Any club found to be in violation of the new, stricter standards would face punishment from the league, according to The Times. All clubs must exercise “all reasonable care” when considering moves for players from certain ownership groups. If a club is found to be in violation of the regulations, an independent commission will have the authority to impose any penalty it deems appropriate, based on the gravity of the offense.
The amended regulations are claimed to have resulted in a ‘bitter split’ between clubs in an ownership portfolio and those that aren’t. Many clubs, notably Manchester City and Newcastle United, voted against the Premier League’s new rules last month.
In its handbook, the league states that it will “seek to ensure the long-term financial sustainability of clubs by extinguishing reliance on enhanced commercial revenues received from entities linked to the club’s ownership” , as well as promoting “fairness amongst clubs, so that clubs are not able to derive an unfair advantage over domestic competitors by increasing revenues or reducing costs via arrangements with entities linked to a club’s ownership” .
Surprisingly, Forest is one of 16 Premier League teams that are part of a larger football business; only Wolves, Tottenham, Luton, and Fulham are not affiliated with another club. Todd Boehly, the owner of Chelsea, owns a stake in French club Strasbourg, whereas Stan Kroenke, the owner of Arsenal, owns the MLS team Colorado Rapids.
