The Premier League has recommended that Everton face a 12-point deduction in its case against them for breaching profit and sustainability rules, the Telegraph has learned.
Everton are facing the threat of severe sanctions if they lose their fight against allegedly breaking the Premier League’s financial regulations, with a decision due later this year.
Telegraph Sport understands the Premier League has recommended the punishment to be extremely severe, and up to a maximum of 12 points. Such a sanction would put them in grave risk of going down, given the team’s relegation battles in recent seasons and precarious current position of 16th, three points off the relegation zone.
Everton’s case is currently being heard by an independent commission after they recorded financial losses of £371.8million over a three-year period, which is well over the permitted amount of £105million set out by the Premier League.
Though the final decision will be made by the commission, the Premier League is seeking a points deduction as punishment if Everton are found guilty.
Everton have stressed they have complied with the rules and insist they will “robustly defend” their position, arguing that exemptions, including those related to the coronavirus crisis, will clear them of any wrongdoing.
Everton are facing a number of potential other sanctions, including a fine and/or a transfer embargo, but the recommended punishment by the Premier League is understood to be significant.
Any points deduction would be the first of its kind in England’s top division, and is likely to trigger panic among rival clubs.
In February, champions Manchester City were charged with breaching 115 regulations over 14 seasons from 2009/10 to last season.
Everton’s financial concerns have arisen after a period of overspending under owner Farhad Moshiri - over the past five years of accounts the club has announced losses of £44.7million in 2022, £121.3million in 2021, £139.9 million in 2020, £111.8million in 2019 and £13.1million in 2018.
The alleged breach was first announced in March by the Premier League, and has been their only public statement on the case so far.
Their statement said: “The proceedings before the commission will, in accordance with Premier League Rule W.82, be confidential and heard in private.
“Under Premier League Rule W.82.2, the Commission’s final award will be published on the Premier League’s website. The League will be making no further comment until that time.”
Everton are also locked in takeover talks with Miami-based investment company 777 Partners, after Moshiri agreed to sell his 94 per cent stake last month.
Last week the company issued a statement insisting the deal had not run into problems after the New York Times reported they were yet to provide the Financial Conduct Authority with the audited financial statements necessary.
That takeover is currently being ratified by the Premier League, Football Association and Financial Conduct Authority, and may not be completed until early next year, though any punishment from the case could result in further delays.
Everton are currently 16th in the Premier League after two wins from their opening nine games, with a trip to West Ham on Sunday.
