Everton points deduction ‘sends shockwaves’ in Chelsea and Man City boardrooms

Manchester City and Chelsea fear Premier League relegation after Everton’s record ten-point deduction.

The Toffees were hit with a whopping sanction for breaching strict Financial Fair Play rules.

They now face huge compensation claims from Leeds, Leicester, Southampton, Nottingham Forest and Burnley.

Legal experts have warned Pep Guardiola’s City, who was slapped with 115 FFP charges in January, and Chelsea — under investigation over transfers during Roman Abramovich’s reign — could be booted out of the top flight.

Top sports lawyer Stefan Borson, the one-time financial adviser to Treble winners City, claims if the clubs are found guilty any punishment could lead to relegation.

He said: “Ten points for Everton feels harsh for a straightforward Financial Fair Play breach.

 “But it reinforces that sanctions against City and now Chelsea will be potentially relegation-inducing.”

Fellow lawyer Simon Leaf, head of sport at Mishcon de Reya and co-author of the chapter on financial regulation in Football and the Law, added: “This is a landmark moment in the history of the  League.

“It will cause shockwaves, particularly in the boardrooms of Chelsea and Manchester City.

“It’s the first time the Premier League has imposed a points deduction for breach of its FFP rules in its history.”

City has vehemently refuted all allegations and engaged top KC Lord Pannick to lead their defence.

Chelsea, by contrast, flagged up issues that took place during Abramovich’s time at Stamford Bridge after internal reviews by the club’s new owners.

An independent commission imposed Everton’s stunning penalty following a five-day hearing behind closed doors.

The Toffees were found to have misled Prem chiefs and flouted League rules over losses that broke the agreed £105million limit over three years by £19.5m.

But the punishment for a single breach will concern chiefs at City and Chelsea, both being probed for alleged offenses over multiple years.

The three-man commission, led by David Phillips KC, said: “Everton’s culpability is great.

 “This was a serious breach that requires a significant penalty.

“We cannot ignore the fact that the failure to comply with the regime was the result of Everton irresponsibly taking a chance that things would turn out positively.

“Further, Everton was less than frank in its dealings with the Premier League over the stadium interest issue.

“Everton failed to manage its finances so as to operate within the generous threshold.

“Its mismanagement led to that threshold being exceeded.”

It will also have an impact on Toffees owner Farhad Moshiri, who has invested £750m.

New prospective owners 777 Partners said the prospect of points deductions and relegation had been “priced in” to the final sale figure.