Everton and Nottingham Forest have been charged with breaching Premier League Profitability and Sustainability Rules on Monday as both clubs face a potential points deduction.
According to Sky Sports, both clubs’ cases have now been referred to the chair of the judicial panel, who will appoint separate, independent commissions to determine the appropriate sanction.
A points deduction faces both Premier League teams and this outcome would be a huge blow to Everton especially.
The Merseyside club have been thrown into a relegation battle this season after they were deducted 10 points – the largest sanction in the history of the Premier League – for a breach of the profit and sustainability rules in November.
The Merseyside club sit one place outside of the relegation zone and without the deduction, they would be twelfth.
Premier League clubs are permitted to lose a maximum of £105m over a three-season period (£35m a season). Due to Forest spending two seasons in the Championship within the latest assessment period, the maximum loss they were permitted was £61m. Both clubs have gone beyond these markers, which has resulted in them being charged.
A points deduction would be a killer blow for Everton as it could essentially confirm their relegation from the English top flight but it has been made clear by the Toffees, that they won’t give up without a fight.