According to a report on Wednesday, Everton risk a 12-point deduction following an inquiry into possible financial rule violations by the Premier League club.
According to the Daily Telegraph, Premier League executives have sought an independent committee to impose the hefty fine, which would be the heaviest points deduction in the competition’s history.
Everton would be minus-five points at the bottom of the standings if they lost 12 points.
Sean Dyche’s squad is presently 16th in the table with seven points, having lost six of their first nine games.
In March, the Premier League sent Everton to the commission for alleged violations of its profitability and sustainability criteria for the term concluding with the 2021-22 season.
Top-flight clubs are permitted to lose a maximum of £105 million ($127 million) over a three-year period or face sanctions.
Everton said in a statement issued on the day that news of the referral was confirmed: “The club strongly contests the allegation of non-compliance and together with its independent team of experts is entirely confident that it remains compliant with all financial rules and regulations.
“Everton is prepared to robustly defend its position to the commission. The club has, over several years, provided information to the Premier League in an open and transparent manner and has consciously chosen to act with the utmost good faith at all times.”
Everton has suffered annual deficits over the past five years, totaling more than £430 million.
The club is the subject of a takeover bid by the American private investment firm 777 Partners, which disputed last week that its bid had stopped due to a failure to provide information to the Financial Conduct Authority.