UPDATE: Evertons facing a 12 point deduction and potential relegation

The Premier League has recommended a deduction of up to 12 points for Everton over alleged breaches of financial rules, according to a report on Wednesday.

The Daily Telegraph has reported that the league has asked an independent commission hearing charges against the Merseyside club to impose a severe sanction.

The US investment firm 777 Partners are expected to pay a reduced price for Everton if the club have points deducted for an alleged breach of the Premier League’s financial rules.

It is understood the Premier League believes a breach of profitability and sustainability (P&S) rules should carry sanctions up to a points deduction. The Daily Telegraph has reported that the maximum deduction recommended is 12 points ― the same as the maximum level in the EFL’s guidelines for sanctions for Financial Fair Play breaches.

Any points deduction would be imposed straight away and docking 12 points would leave Everton on minus five for the season so far. It is the first case ever brought by the Premier League on alleged P&S breaches and is considered by all clubs as an important test case.

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