The Championship club are set to be punished for breaking Financial Fair Play rules in the last calendar year - with losses of more than £17 million announced in March.
Having failed to achieve promotion to the Premier League last season, the club look to be hit hard in the coming months, and it looks unlikely that the club will have cut their losses to a minimum £8 million by the time the accounts must be submitted in late November.
Stuart Pearce has already confirmed that the club are preparing to face the sanctions that come about from failing to comply with FFP, and, although the Football League are set to meet next month over changing the rules, many clubs are pressing for deserved punishment.
With the arrival of the Al-Hasawi family in June 2012, the club have spent heavily to achieve promotion to the top flight, and the outlays on Britt Assombalonga and Michail Antonio over the summer will have hurt their accounts even more. Despite selling Karl Darlow and Jamaal Lascelles to Newcastle for a combined £7 million, Telegraph Sport believes that the club are exceeding losses of over £8 million.
Having spent heavily in recent seasons, the club’s failure to win promotion to the top flight has further hurt their expenditure, and Forest will be looking to finally make the step into the Premier League this season - despite not being able to strengthen the playing squad in January.
It is expected that two other Championship clubs will be faced with a transfer embargo at the start of next year following a failure to comply with FFP, with Leeds United one of two teams who have failed to keep check on their accounts following the takeover of Massimo Cellino during the summer.