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Because when the owners cash dries up for whatever reason (boredom/skint/death etc) the club is unable to afford to carry on and pay the wages it has promised (like Pompey), i.e. It's unsustainable. Infrastructure is excluded presumably as it's likely to have a positive impact on income rather...

Because it is against the FFP rules they signed up to. Others clubs are abiding by the rules all the clubs agreed. Forest are just ignoring them.