Everton are facing a potential 12-point deduction in the Premier League if they are found guilty of breaching profit and sustainability rules.
That's according to The Telegraph, who claim: "Everton are facing the threat of severe sanctions if they lose their fight against allegedly breaking the Premier League’s financial regulations."
It is claimed that the Premier League has recommended a maximum punishment of a 12-point deduction for the club.
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The case is currently being heard by an independent commission after the club's heavy losses over the past three years, with a final decision yet to be made.
If Everton are found guilty of a rule breach and receive the maximum 12-point penalty, however, they would drop to the bottom of the Premier League table.
Sean Dyche's side would sit on minus five points - nine points away from Premier League safety.
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They would become just the second club in English top division history to receive a points deduction, with Portsmouth being docked nine points during the 2009/10 season after entering administration. Pompey were subsequently relegated at the end of the campaign.
In response, Everton have stressed that they have complied with the rules. They add that they will 'robustly defend' their position, and say that financial-related exemptions, including those related to the Covid-19 pandemic, will clear them of wrongdoing.
If found guilty, the Toffees could also receive a potential fine or transfer embargo.
The Premier League initially announced its investigation into the club in March, after they posted losses of £371.8 million over a three-year period - above the division's maximum loss threshold of £105 million per year.
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Financial Fair Play (FFP) concerns are said to have affected the club's spending in the transfer market in recent seasons, with focus this summer centring on selling players such as Alex Iwobi and Demarai Gray.
Everton spent fees on just two players in the summer, although did sanction an outlay of over £25 million on striker Beto from Serie A side Udinese.
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Topics: Everton, Football, Premier League
Joe Adams