Everton has been referred by the Premier League to an independent commission for an alleged breach of its profitability and sustainability rules.
The assessment period for which the Toffees have been charged covers four seasons from the start of 2018/19 to the end of 2021/22.
Everton recorded losses of £371.8m over the past three years. Premier League rules allow clubs to lose a maximum of £105m over three years.
Clubs who break the Premier League's Financial Fair Play rules can suffer a points deduction or fine in a wide range of possible punishments Everton could face.
Clubs who break the Premier League's Financial Fair Play rules can suffer a points deduction or fine in a wide range of possible punishments Everton could face.
PA
Everton said £170m of their losses were caused by the pandemic in their latest accounts.
Clubs have been allowed to write off losses caused by the coronavirus pandemic.
Everton said in a statement: "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.
"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."
Whilst a spokesperson for the Premier League said: “We have referred an alleged breach of our Profitability and Sustainability Rules by Everton.
“The assessment period for which it is alleged the club is in breach is the period ending season 2021-22. Proceedings before the commission will be confidential and heard in private.”
Everton sits 15th in the Premier League table, currently two points above the relegation zone.
PA
Everton is the second club to be charged with breaking Premier League financial rules this year.
Manchester City has been hit with an astonishing 101 charges covering a nine-year period.
Everton sits 15th in the Premier League table, currently two points above the relegation zone.
The Toffees are battling for survival for the second consecutive season and recently appointed former Burnley manager Sean Dyche in a bid to beat the drop.
