Premier League clubs are permitted to lose a maximum of £105m over a three-year period; Everton were deducted 10 points in November for a breach of profitability and sustainability rules, which the club are appealing.
Everton and Nottingham Forest have been charged with breaching Premier League Profitability and Sustainability Rules.
Premier League clubs are permitted to lose a maximum of £105m over a three-season period (£35m a season). Due to Forest spending two seasons in the Championship within the latest assessment period, the maximum loss they were permitted was £61m.
The Premier League says both clubs have confirmed they are in breach of the rules for the assessment period ending season 2022/23.
Their cases have now been referred to the chair of the judicial panel, who will appoint separate, independent commissions to determine the appropriate sanction. Punishments could include a fine, points deduction or other sporting sanction.
In November, Everton were deducted 10 points – the largest sanction in the history of the Premier League – for a breach of the profit and sustainability rules. The club are appealing against their punishment.