Nottingham Forest would face a wage bill ‘crisis’ if they are relegated this season, sources have told Football Insider.
Nuno Espirito Santo’s side could be plunged into the relegation spots if they are found guilty of breaching the Premier League’s Profit and Sustainability Rules and are therefore given a points deduction.
Forest were charged with breaching PSRs earlier this month for allegedly exceeding their allowable losses over a three-year period.
Relegation could prove extremely costly for Forest with the Daily Mail reporting that the majority of their first-team squad do not have relegation clauses inserted in their contracts.
Forest spent over £200million on new players since their promotion in 2022, and it is understood that many of their new signings rejected a clause that would cut their pay if relegated.
Sources told Football Insider that the lack of relegation clauses at Forest is a ‘now a crisis’ and a potential ‘financial disaster’ if they are demoted.
Forest’s wage bill in their latest 2021-22 accounts was £59million, but that figure will have increased significantly over the last two seasons due to their squad investment.
With no relegation clauses to lower their wage bill in the Championship, Forest would likely have to offload their top earners at discounted prices to balance their books.
Forest are set to hear the verdict of their financial breach before the end of the 2023-24 season due to the new fast-track regulations introduced by the Premier League.
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