Everton have been hit with a 10-point deduction by the Premier League.
The punishment was handed down after an independent commission found that the club had breached top-flight Profit and Sustainability rules.
Goodison Park chiefs were found guilty of eclipsing the £105 million threshold over a three-year period after being referred in March at the end of 2021/22.
It means Sean Dyche’s side are now mired in the relegation zone with just four points to show for their opening 12 games of the current campaign.
The Blues responded to Friday’s ruling by claiming it was ‘shocked and disappointed’ and signalled its intention to appeal against the sanction.
“The club believes that the commission has imposed a wholly disproportionate and unjust sporting sanction,” confirmed a club statement.
“The club has already communicated its intention to appeal the decision to the Premier League.
“The appeal process will now commence and the club’s case will be heard by an appeal board appointed pursuant to the Premier League’s rules in due course.
“Everton maintains that it has been open and transparent in the information it has provided to the Premier League and that it has always respected the integrity of the process.
“The club does not recognise the finding that it failed to act with the utmost good faith and it does not understand this to have been an allegation made by the Premier League during the course of proceedings.
“Both the harshness and severity of the sanction imposed by the commission are neither a fair nor a reasonable reflection of the evidence submitted.
“The club will also monitor with great interest the decisions made in any other cases concerning the Premier League’s Profit and Sustainability Rules.
“Everton cannot comment on this matter any further until the appeal process has concluded.”