Nottingham Forest have failed with an appeal against their four-point punishment for breaching Premier League profit and sustainability rules (PSR).

The club's case was held on 24 April and an appeal board has upheld the original decision of an independent commission to impose the sanction.

The commission found Forest's losses to 2022-23 breached the threshold of £61m by £34.5m.

It means Forest remain 17th and three points clear of the relegation zone with two games left to play.

In March, Forest dropped into the Premier League's relegation zone after the initial points deduction.

The Premier League's profit and sustainability rules permit clubs to lose £105m over three seasons - or £35m per campaign - but Forest's maximum loss was limited to £61m as they spent two years of the assessment in the Championship.

The club's net transfer spend in the 2022-23 season was £142.8m. They lost an average of £3m across 2020 and 2021 with a further £40m loss in 2022 and £52m in 2023, amounting to a total of £95m.

Forest had been due to receive a six-point deduction - three points for the initial breach and a further three for the size of the breach - but their "early plea" and "cooperation" saw the ban reduced to four points.

In November, Everton were docked 10 points for breaching PSR, reduced to six on appeal. The Toffees were hit were a further two-point deduction in March for a second breach, which they have appealed against; however, they are safe from relegation.

The resolution of Forest’s PSR case comes two weeks after their controversial statement on social media following a 2-0 defeat at Everton.

The club have been charged with misconduct by Football Association after the social media post questioned the integrity of the video assistant referee (VAR).

Forest had three penalty claims rejected and the club claimed they told referees body the Professional Game Match Officials Limited (PGMOL) that the game's video assistant referee (VAR) Stuart Attwell was allegedly a fan of relegation rivals Luton.

Despite the critical post on social media, BBC Sport has been told that Forest did not ask for Attwell to be replaced prior to the match.

Forest host Chelsea on Saturday (17:30 BST) and end the campaign at relegation-threatened Burnley (16:00 BST) on 19 May.

Luton midfielder Andros Townsend, who spent two years at Everton before moving to Kenilworth Road, has said the uncertainty over clubs being sanctioned and subsequently appealing "doesn't make sense".

"I think it makes a mockery of the Premier League. When you announce the charge, you have to be certain of the points deduction," Townsend told BBC Radio 5 Live's Monday Night Club in April.

24 March 2023: Premier League refers Everton to independent commission over alleged breach of financial fair play rules for the three-year accounting period ending with the 2021-22 season.

17 November 2023: Everton receive an immediate 10-point deduction after being found to have breached the Premier League's financial rules.

15 January 2024: Everton and Nottingham Forest are charged by the Premier League for breaches of the league's profit and sustainability rules.

26 February: Everton's first penalty for breaching Premier League financial rules is reduced from 10 points to six after an appeal.

7-8 March: Forest's hearing takes place.

18 March: Forest are docked four points and drop into relegation zone. An independent commission found Forest's losses to 2022-23 breached the threshold of £61m by £34.5m.

Week commencing 25 March: Hearing for Everton's second charge, relating to three-year accounting period ending in 2022-23, takes place this week.

8 April: Everton receive second points deduction, this time docked two points.

24 April: Forest's appeal against their four-point punishment is heard.

7 May: Independent appeal board upholds commission's decision to deduct Forest four points.

19 May: Final day of the Premier League season.

24 May: Latest possible date for an appeal hearing to be concluded.