Everton and Nottingham Forest have been referred to an independent commission by the Premier League after admitting to breaches of financial rules at the end of the 2022/23 season.
The alleged breaches of the league's profitability and sustainability rules relate to the 2022-23 season and leave both clubs facing the threat of a points deduction.
With Everton and Nottingham Forest currently embroiled in a relegation battle, that would plunge their top-flight status into severe doubt.
Everton have already been deducted 10 points this season for exceeding the allowable loss thresholds at the end of the 2021/22 campaign.
The Merseyside club are appealing against that sanction.
"Everton FC and Nottingham Forest FC have each confirmed to the Premier League that they are in breach of the league's profitability and sustainability rules (PSR)," a Premier League statement said on Monday.
"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.
"Commissions are independent of the Premier League and member clubs. The proceedings are heard in private with the commissions' final decisions made public on the Premier League's website."
AFP