Two of the Premier League's biggest clubs, Manchester City and Chelsea, are now fearing the possibility of relegation following Everton's record ten-point deduction. The Toffees were hit with this massive sanction for breaching Financial Fair Play rules, causing concern among other top clubs.

Could Pep Guardiola and Mauricio Pochettino face consequences?

Both Manchester City manager Pep Guardiola and Chelsea counterpart Mauricio Pochettino now face an anxious wait as their clubs' FFP cases are under investigation. City, who were charged with 115 FFP violations in January, and Chelsea, who are being scrutinized for transfers during Roman Abramovich's reign, could potentially face relegation if found guilty.

Legal experts weigh in

Top sports lawyer Stefan Borson, who was once a financial adviser to City, believes that Everton's ten-point deduction for a straightforward FFP breach might set a precedent for harsher punishments for City and Chelsea. Fellow lawyer Simon Leaf, head of sport at Mishcon de Reya, agrees that this is a landmark moment in Premier League history and predicts shockwaves in the boardrooms of both clubs.

Everton's punishment and its implications

An independent commission imposed the stunning penalty on Everton following a five-day hearing. The Toffees were found to have misled Premier League officials and violated league rules by exceeding the agreed £105 million limit over three years by £19.5 million. This punishment for a single breach is concerning for City and Chelsea, who are being investigated for alleged offenses over multiple years.

Everton's mismanagement and lack of compliance with FFP regulations were deemed significant by the three-man commission led by David Phillips KC. The club's failure to operate within the financial threshold and its dishonesty in dealing with the Premier League over a stadium interest issue were cited as reasons for the penalty.

Impact on Everton and its owner

Not only will the points deduction have an impact on Everton's performance in the Premier League, but it will also affect the club's owner, Farhad Moshiri, who has invested £750 million. Prospective owners 777 Partners have factored in the possibility of points deductions and relegation into the final sale figure, indicating the potential financial implications of these punishments.

Overall, this situation is a cause for concern for Manchester City, Chelsea, and other top clubs in the Premier League as they navigate the consequences of breaching FFP rules and face potential relegation.