Everton have been docked ten points points after breaching Premier League financial rules, the English top flight announced on Friday.
The league referred Everton to an independent commission in March for an alleged breach of its profitability and sustainability rules (PSRs).
Clubs are allowed to lose a maximum £105 million ($130 million) over a three-year period or face sanctions.
The punishment, the biggest sporting sanction in the competition’s history, leaves the club 19th in the table.
The Premier League said in a statement: “The club admitted it was in breach of the PSRs for the period ending season 2021/22 but the extent of the breach remained in dispute.
“Following a five-day hearing last month, the commission determined that Everton FC’s PSR calculation for the relevant period resulted in a loss of £124.5 million, as contended by the Premier League, which exceeded the threshold of £105 million permitted under the PSRs.
“The commission concluded that a sporting sanction in the form of a 10-point deduction should be imposed. That sanction has immediate effect.”
Everton issued a statement saying they were “shocked and disappointed by the ruling”, announcing their intention to appeal.
