Everton have received a 10-point deduction after being found guilty of breaching the Premier League's profit and sustainability rules.

The news comes as a devastating blow to manager Sean Dyche and leaves the Toffees 19th in the table with just four points, ahead of Burnley only on goal difference.

After the dealing their biggest points deduction since their formation in 1992, the Premier League said: "An independent commission has imposed an immediate deduction of 10 points on Everton 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'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 £105m 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 say they are "shock and disappointed" by the outcome of the case and will look to appeal the sanction.

The Toffees wrote in a statement: "Everton maintains that it has been open and transparent in the information it has provided to the Premier League and that it has always respected the integrity of the process. 

"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."

Everton had started to find some form prior to the significant points deduction.

The Toffees beat Crystal Palace 3-2 at Selhurst Park last weekend, their second consecutive away victory after defeating West Ham 1-0 last month.

Dyche's side now face a serious battle to avoid relegation, with Manchester United the first visitors to Goodison Park after the international break.