Everton & Forest on the brink

includes two seasons for which they are already being punished.

Second, the rules are set to be changed in August when Everton would be compliant with the proposed regulations.

And, third, the current restrictions – clubs are allowed losses of £105m over a three-year rolling cycle – have not taken into account inflation and global economic issues since their inception in 2014.

The Premier League said in a statement: “Everton and Nottingham Forest have each confirmed that they are in breach of the league’s profit and sustainability rules.

“Both cases have now been referred to the chair of the judicial panel who will appoint separate commissions to determine the appropriate sanction.”

In Everton’s case, that will have to wait until after a decision on their current appeal against the 10-point ban which has put them a point above the drop zone.

But the Premier League wants the matter closed by May 24 at the latest, a week after the last game of the Premier League season.

Any points deduction, though, would apply to this season’s standings, meaning Everton and

Forest could finish their campaign and not know what division they will be playing in next season.

Also in their mitigation, Everton will insist only Luton and Brighton have a healthier net spend on players over a five-year period and that they are, effectively, being punished for building a new stadium, expected to cost £750m.

But the Premier League are clearly determined to be tough on PSR breaches and, if the current 10-point penalty stands and Everton are hit with another, similar deduction, they will almost certainly be playing in the Championship next season.

Pep Guardiola (top) and his Manchester City side are still facing 115 charges of breaching financial fair play rules, with an outcome to their case believed to be a considerable time away.