Nottingham Forest’s appeal against a four-point Premier League deduction for breaching profitability and sustainability rules (PSR) has been rejected.

Forest said when the punishment was imposed in March that they were “extremely disappointed” and claimed spending restrictions on promoted clubs undermined the league’s “integrity and competitiveness”.

A Premier League appeal board heard the case and the verdict leaves Forest three points above the relegation zone with two matches remaining. They took a big step towards retaining their Premier League status by winning at Sheffield United last Saturday.

Forest breached permitted losses of £61m by £34.5m. Premier League clubs are allowed to lose £105m over a three-year period but Forest’s permitted losses were limited to £61m because they spent two years of the period in the Championship. Clubs’ permitted losses are reduced by £22m for each season across a three-year accounting period they spend in the EFL.