Everton face a potential points deduction over financial fair play breaches.
The Premier League has referred the club to an independent commission after a 10-month investigation into irregularities around its Profit and Sustainability.
Under the league’s financial regulations, top-flight clubs are only permitted a maximum margin of losses worth £105 million across a three-year period.
Since 2018/19, the Blues have posted a £371.8M deficit as transfer spending continued to grow under their current majority shareholder Farhad Moshiri.
The league confirmed on Friday that Goodison Park chiefs face allegations of breaking the same regulation for which Manchester City is also being probed.
“In accordance with Premier League Rule W.82.1, the Premier League confirms that it has today referred an alleged breach of the League’s Profitability and Sustainability Rules by Everton Football Club to a Commission under Premier League Rule W.3.4,” confirmed a statement.
“The assessment period for which it is alleged that the club is in breach is the period ending season 2021/22.”
“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.”
If found guilty, the club could be deducted points or face a substantial fine but any sanctions are highly unlikely to be impssed in the current season.
The process, which would culminate in the independent commission’s ruling on the case, is expected to take several months at least without appeals.
Everton responded to the news by admitting they were ‘disappointed’ but vowed to ‘robustly defend’ their position in answering the alleged charge.
“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,” read a club statement.
“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.”