Everton will engage in a crucial hearing over the next three days to appeal their ten-point deduction for breaching the Premier League’s Profit and Sustainability Rules (PSR).
The hearing is scheduled to commence on Wednesday and will finish by Friday, while the final decision is expected to be announced around mid-February.
The Toffees were penalised by an independent commission on November 17 after breaching the PSR, prompting the club to swiftly declare their intent to appeal the decision.
Everton expressed their disappointment at the decision after being plunged into a relegation battle, although the Premier League claims the club admitted to having breached the rules during a five-day hearing.
The independent commission concluded that Everton’s PSR calculation for the relevant period resulted in a loss of £124.5 million, exceeding the permitted threshold of £105m outlined in the rules.
Everton narrowly avoided relegation to the Championship last season and endured a shaky start to the season that positioned the club in 14th in the Premier League, eight points above the relegation zone.
However, the ten-point hit has seen the club hovering above the drop zone, one point ahead of 18th-placed Luton Town, who have a game in hand.
Despite their current situation, the Toffees are in danger of another points deduction after they were charged with a second breach of the PSR rules earlier this month.
Only three other clubs in Premier League history have faced points deductions – Middlesbrough (3 points), Portsmouth (9 points), and Tottenham Hotspur (12 points).
Middlesbrough were docked points for failing to fulfil a fixture against Blackburn Rovers in 1996/97, and Portsmouth were stripped of nine after entering administration in March 2010.
Tottenham were handed a 12-point hit before the 1994/95 season for financial irregularities committed several seasons earlier, although their punishment was eventually revoked.
Everton continue their battle against relegation on Tuesday evening, travelling to Craven Cottage to take on Fulham.
Sean Dyche’s side will face the Cottagers on the back of a disappointing 2-1 defeat to Luton that sealed their exit from the FA Cup at the fourth round stage.