Everton have been rocked by a 10-point deduction for breaching profit and sustainability rules.
The penalty has been handed down with immediate effect.
The punishment is the biggest sporting sanction in Premier League history and leaves Everton 19th in the table on a new total of four points.
Everton say they will appeal the ruling.
The Premier League announced: "An independent Commission has imposed an immediate deduction of 10 points on Everton FC for a breach of the Premier League's Profitability and Sustainability Rules (PSRs).
"The Premier League issued a complaint against the Club and referred the case to an independent Commission earlier this year. During the proceedings, 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 124.5million, as contended by the Premier League, which exceeded the threshold of 105million 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."
In a statement, Everton responded, stating: "The club does not recognise the finding that it failed to act with the utmost good faith and it does not understand this to have been an allegation made by the Premier League during the course of proceedings.
"Both the harshness and severity of the sanction imposed by the commission are neither a fair nor a reasonable reflection of the evidence submitted.
"The club will also monitor with great interest the decisions made in any other cases concerning the Premier League's profit and sustainability rules."