According to the Telegraph, the Premier League has suggested that Everton lose 12 points in their case for breaking profit and sustainability regulations.

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.

The Premier League has suggested a very harsh penalty, up to a maximum of 12 points, according to Telegraph Sport. With their past relegation struggles and their precarious current standing of 16th, three points outside the relegation zone, a sanction of this kind would put them in serious danger of dropping out.

Everton’s case is currently being heard by an independent commission after they recorded financial losses of £304 million over a three-year period, which is well over the permitted amount of £105 million 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 point deduction would be the first of its kind in the top division of England, and rival clubs would probably go crazy.

Champions Manchester City were accused of breaking 115 rules during the course of 14 seasons, from 2009–10 to the current one, in February.

Following a period of excessive spending under owner Farhad Moshiri, Everton’s financial issues have emerged. According to the club’s financial statements for the last five years, losses totaling £44.7 million in 2022, £121.3 million in 2021, £139.9 million in 2020, £111.8 million in 2019 and £13.1 million in 2018 have been reported.

The Premier League made its initial public announcement about the alleged breach in March, and it remains their only public statement regarding the case to date.

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 and Miami-based investment firm 777 Partners are negotiating a takeover after Moshiri consented to sell his 94% share last month.

Following news from The New York Times that they had not yet given the required audited financial statements to the Financial Conduct Authority, the company released a statement last week reiterating that the deal was proceeding as planned.

Although any penalties from the case could cause further delays, that takeover is presently being approved by the Premier League, Football Association, and Financial Conduct Authority. It might not be finished until early in the new year.

Everton are currently 16th in the Premier League after two wins from their opening nine games, with a trip to West Ham on Sunday.