Nottingham Forest stars do NOT have relegation clauses in their contracts… with Nuno Espirito Santo’s side potentially facing further financial problems if they go down

Nottingham Forest will face further financial challenges if they fail to survive in the Premier League this season as many of Nuno Espirito Santo’s squad do not have relegation clauses in their contracts. 

Mail Sport has learned that a significant number of the 27 players who remain at Forest after signing since their promotion to the top-flight 18 months ago will not face mandatory pay-cuts if the club are relegated.

Forest were able to insert relegation clauses into some of the contracts negotiated during the extraordinary £200million spending spree that resulted in them being charged by the Premier League with breaking Profit and Sustainability Rules last week, but a number of players refused to accept them. 

As a result the club will face significant liabilities if they go down at the end of the season, which is likely to result in a fire-sale of their highest earning players in the summer.

Relegation clauses are a common tool used by newly-promoted clubs to mitigate against the cost of returning to the Championship by ensuring their players take a pay-cut if they go back down. Although the level of pay-cut varies it can be as much as 50 per cent, which protects the clubs against the loss of Premier League income.

Nuno Espirito Santo’s side are facing the threat of a points deduction as result of the Premier League charges

Forest are four points clear of the relegation zone following last weekend’s defeat to Brentford, but are facing the threat of a points deduction as result of the Premier League charges. 

The club are co-operating with the Premier League, but the fact that they are using the delayed £47.5million sale of Brennan Johnson to Tottenham last August indicates they have admitted a major overspend, as they are claiming they would have complied had they sold the 22-year-old for £30m before the end of the accounting period in June.

Everton were docked 10 points by an independent commission last November after being found guilty of a £19.5m overspend so Forest could face a similar sanction.

Forest declined to comment.