The Telegraph report that Everton face punishment for breaching the Premier League financial rules. The Toffees could be docked 12 points.
The decision will be made before the end of this year, with the Premier League 'recommending the punishment to be extremely severe'. They could also get a fine and a transfer embargo.
The 12-point deduction will most likely see the Toffees end up going down to the Championship. They are currently 16th, just three points ahead of 18th.
Meanwhile, Jamie Carragher has reacted to the news bringing the similar financial charges faced by Man City into the conversation.
The former Liverpool defender tweeted: "The PL want a 12 point deduction for Everton for one charge. Man City are going to end up in the National League North if the PL get their way!!
"Unbelievable the amount of stories that come out about Everton’s situation, but Man City’s, which has 114 more charges & has gone on for much longer, has gone very quiet"
