Everton have released a statement after the Premier League referred the club to an independent commission for an "alleged breach" of profit and sustainability rules.
The Blues expressed their "disappointment" at the decision and stated they are "prepared to robustly defend" their position to the commission.
The full statement from Everton reads: "Everton Football Club is disappointed to hear of the Premier League’s decision to refer an allegation of a breach of Profit & Sustainability regulations to an independent commission for review.
"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 MORE: Premier League statement in full after Everton accused of breach of financial rules
"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.
"The club will not be making any further comment at this time."
According to The Telegraph, the Blues are "facing the threat of a points deduction or heavy fine after being charged by the Premier League with breaching financial rules." The report adds that "there is no timeframe yet on when the case will be heard, but it is thought unlikely that any decision will be made this season."
The Premier League said in a statement: "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. The assessment period for which it is alleged that the Club is in breach is the period ending Season 2021/22.
"Commissions are independent of the Premier League and member clubs. The members of the Commission will be appointed by the independent Chair of the Premier League Judicial Panel, in accordance with Premier League Rules W.19, W.20 and W.26.
"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's annual accounts for the 2021/22 season are due to be made public next week.
The Blues' last released accounts, for the 2020-21 season, showed a loss of £120.9m. It brought the club's total loss over three years to £371.8m.
Premier League clubs are permitted to lose a maximum of £105m over three years.
Amid speculation that the club could be in breach of profit and sustainability rules, last March Everton insisted they had worked closely with the Premier League and external auditors to ensure it had complied with the laws, pointing to costs that could be written off under the regulations, in particular the impact of coronavirus.
The speculation came against the backdrop of a desperate fight for Premier League survival on the pitch. Frank Lampard's team did manage to beat the drop after they beat Crystal Palace 3-2 in dramatic fashion in what was their final home game of the campaign.
This season, Everton, once again, find themselves embroiled in a relegation battle. Now under the command of Sean Dyche, who took over from the sacked Lampard in January, the Blues are currently 15th in the Premier League and two points above the relegation spots.
There have been protests from supporters against owner Farhad Moshiri and the club's board throughout the season.
Yesterday we reported how the Everton Shareholders Association has spoken of its disappointment at the club’s decision not to reinstate Annual General Meetings.
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