Everton reportedly face a 12-point deduction if they lose their fight against allegedly breaching Premier League financial regulations.
The Telegraph have reported that the Premier League have recommended a maximum points deduction after the Toffees recorded financial losses of £304million over a three-year period, which is well above the permitted £105m amount.
The case is being heard by an independent commission and a decision is due later this year. Any points deduction would be the first of its kind in the Premier League.
Everton insist they have not broken any rules and will "robustly defend" their position.
A points deduction could spark panic among other clubs. In February, Manchester City were charged with breaching 115 regulations over 14 seasons from 2009-10 to last term.
Potential sanctions on Everton could also impact takeover talks after Farhad Moshiri agreed to sell his 94 per cent stake in the club to Miami-based investment company 777 Partners last month.
The Times report that the US firm is expected to pay a reduced price for Everton if the club have points deducted for an alleged breach of financial rules.
