Everton have been docked 10 points after being found guilty of breaching Premier League financial fair play rules, the biggest points deduction in the competition’s history.

The penalty drops the club to second bottom, two points from safety. Everton, who had denied wrongdoing, believe a sporting punishment for an accountancy matter is disproportionate and inappropriate and have told the league they intend to appeal. The club said it was “shocked and disappointed”.

Leeds, Leicester and Burnley have previously written to Everton’s prospective new owners, 777 Partners, warning they intended to sue for damages in the event of a guilty verdict. All three clubs were relegated in the past two seasons when Everton narrowly survived.