The Premier League has charged Everton and Nottingham Forest with breaching its financial rules.
Both clubs have been referred to an independent commission for alleged breaches of profit and sustainability rules in their accounts for 2022-23.
Under Premier League regulations, clubs can lose a maximum of £105m over a three-season period, or £35m per campaign, before facing sanctions.
Clubs that breach those rules are at risk of a fine or a points deduction.
Everton are currently appealing against a 10-point deduction from a previous charge.
The Premier League said in a statement that Everton and Nottingham Forest “have each confirmed that they are in breach of the league’s profitability and sustainability rules”.
“This is as a result of sustaining losses above the permitted thresholds for the assessment period ending season 2022-23.
“In accordance with Premier League rules, both cases have now been referred to the chair of the judicial panel, who will appoint separate commissions to determine the appropriate sanction.”
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