Getty Images

Everton have been handed an immediate 10-point deduction for breaching the Premier League's profit and sustainability rules. The Toffees' sanction is the biggest in Premier League sporting history and moves the club down to 19th position in the table on just four points.

Everton have indicated that they intend to appeal against the decision which has "both shocked and disappointed" the club due to it being "wholly disproportionate and unjust." The Merseyside club was referred to an independent commission by the Premier League back in March, although the details of the breach were not revealed at that time.

The Toffees announced a fifth consecutive year of financial losses following their 2021-22 deficit of $55.5 million. The Premier League rules allow clubs to lose just over $130 million over a three-year period and Everton did recognize that they breached the profit and sustainability rules for the 2021-22 period.

A hearing in October found in favor of the English topflight that the club's losses over that period totaled nearly $150 million.

"The club does not recognize the finding that it failed to act with the utmost good faith and it does not understand this to have been an allegation made by the Premier League during the course of proceedings," the club said in a statement.

Don't miss CBS Sports Golazo Network's Morning Footy, now in podcast form! Our crew brings you all the news, views, highlights and laughs you need to follow the Beautiful Game in every corner of the globe, every Monday-Friday all year long.

"Both the harshness and severity of the sanction imposed by the commission are neither a fair nor a reasonable reflection of the evidence submitted. The club will also monitor with great interest the decisions made in any other cases concerning the Premier League's profit and sustainability rules."

Only two other Premier League clubs in history have received points deductions with Middlesbrough docked three points for failing to fulfil a fixture against Blackburn Rovers in 1996-97. Portsmouth was the other club back in 2010 with nine points removed after Pompey went into administration -- both sanctioned clubs were relegated

Everton are now level with rock bottom Burnley on four points from 12 games and two points away from safety outside the relegation zone. Sean Dyche's men avoided the drop by two points last season and had been in 14th with eight points between them and the bottom three.

The Toffees have never been relegated from the Premier League in their history since the competition's inception back in 1992. Champions Manchester City have been charged by the Premier League in February for financial breaches which has gone to an independent commission with over 100 alleged infringements.

Chelsea could also face action from England's soccer authorities regarding payments connected to former owner Roman Abramovich. The Blues were fined over $10.5 million by UEFA in July for "submitting incomplete financial information" related to the 2012-19 period and a settlement for broken FFP rules.