Everton have stated that they are "disappointed to hear" that the Premier League has decided to refer them to an independent commission over an alleged breach of Financial Fair Play rules.
The Premier League released a statement on Friday afternoon announcing that they had referred Everton to an independent commission following an alleged breach of their Profit and Sustainability rules. Leeds United and Burnley raised concerns at the end of last season over the Toffees accruing £371.8m worth of losses over the last three years - far more than the £105m allowed in the same time frame.
The referral from the league concerns the period ending with the 2021/22 season. Leeds' relegation rivals now find themselves facing a potential fine or even a points deduction should they be found to be in breach of the Profitability and Sustainability rules.
Everton have since issued a statement of their own refuting any wrongdoing, saying: "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."
Everton are in serious danger of incurring a points deduction after announcing £400m in losses over the last four years.
Having released their financial accounts for the 2021/22 season the club announced further losses of £44.7m, which might sound minimal, but added to their losses over the past couple of seasons, it could spell bad news.
The Premier League's Financial Fair Play regulations state that clubs are allowed to record a maximum of £105m in losses over a three-year period. Everton's combined losses in that period amount to £372.6 million.
Following the release of their financial results, the club's majority shareholder Farhad Moshiri announced an injection of around £70m from his personal funds to support the club, bringing Everton's combined losses between 2019 and 202