Everton facing 12-point deduction as Premier League recommends 'severe' FFP punishment that could relegate Sean Dyche's team

• Everton charged with FFP breach
• Premier League recommends severe punishment
• Heavy points deduction could relegate Toffees

WHAT HAPPENED? The club were charged with alleged breaches of FFP back in March after recording losses of £371.8m ($388.3m) over the past three years. Clubs are only allowed to lose a maximum of £105m ($128.3m) in such a timescale, according to financial rules. An independent commission is currently hearing the Toffees' case and will announce a result later this year which could see the club hit with a 12-point deduction if found guilty, according to the Telegraph.

THE BIGGER PICTURE: The Premier League has recommended Everton be handed an "extremely severe" punishment which could have serious ramifications. Sean Dyche's side narrowly avoided relegation on the final day of last season and currently sit down in 16th place in the table, just three points off the drop zone. A significant points deduction could therefore leave the club with a mountain to climb to avoid relegation to the Championship. The saga comes at a time when Everton are in the midst of a takeover by U.S. investment company 777 partners. Owner Farhad Moshiri has agreed to sell 94.4% of his stake but there have been doubts over whether the deal will go ahead.

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WHAT NEXT? Everton head to West Ham in the Premier League on Sunday.