Premier League begin secret hearing into Everton's alleged breaches of financial rules that may result in points deduction - with senior club officials unaware process had begun

• Everton might have breached financial guidelines
• PL begin a secret investigation
• They were charged earlier in March

WHAT HAPPENED? Everton were charged by the Premier League of breaking Financial Fair Play regulations after they booked cumulative losses of almost £372 million over the years, which enormously exceeds the permitted margin of £105m.

According to Daily Mail, an independent commission has been set up as part of the investigation with both Everton and the Premier League presenting their case in behind-closed-doors hearings. Although the Premier League might announce the verdict next week, the tribunal is not working under any set timeline and might reveal the sanctions next month, which might include a fine, transfer embargo, or even points reduction.

THE BIGGER PICTURE: The hearings are being conducted with utmost secrecy and it is believed that even the senior officials at the clubs were in darkness about the trials. However, the club remains confident that they will be cleared of the charges as they are taking into account the various allowances that were allotted due to the COVID-19 pandemic.

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WHAT NEXT? If Everton are found guilty of breaching Financial Fair Play rules, Burnley, Leeds, and Leicester are prepared to sue Everton for a sum of £300 million. This legal action could also have a direct impact on Everton's proposed sale to 777 Partners. The threat of legal action is based on the argument that Everton narrowly avoided relegation last season, and any financial penalties incurred due to rule breaches would have an adverse impact on these rival clubs.