After a long investigation, Everton have now been deducted 10 points by the Premier League after breaching profit and sustainability rules.
This deduction will be imposed immediately, but the club are likely to appeal the decision in an attempt to minimise the punishment or get it waived completely.
As a result of the deduction, Everton now find themselves in the relegation zone after the team were building some momentum with two wins in their last three league matches.
But are Everton the only team in Premier League history to receive a points deduction?
Middlesbrough (1996/97 season)
Middlesbrough were the first team in the history of the Premier League to receive a points deduction.
At the start of the 1996/97 season, there was excitement surrounding the team who had an array of talent with names such as Emerson and Juninho.
This particular campaign however was derailed on December 20, 1996 when Middlesbrough were set to make the trip to Blackburn Rovers.
While preparing for the game, the Teessiders were hit by a virus which affected the club both on and off the pitch.
Manager Bryan Robson was already dealing with an injury crisis and now eight players were unable to play as a result of the virus leaving him with a squad of just 17 players which contained three goalkeepers.
Middlesbrough would go onto call off the fixture, but a mix up in communication between chief exectuive Keith Lamb and the Premier League saw the cancellation deemed as 'illegal' with the club receiving a three point deduction for their actions.
This punishment would prove the difference in Middlesbrough's fight to stay in England's top flight as Robson's team fell just two points short of safety following a 1-1 draw with Leeds United on the final day.
Portsmouth (2010/11 season)
Portsmouth are the second team to have received a points deduction from the Premier League.
But unlike Middlesbrough, this punishment was given due to financial issues at the club.
With debts of £65m and sitting bottom of the Premier League, the club was placed into administration and was given a nine point deduction in March 2010.
This put Pompey 17 points away from safety and all but confirmed their relagation to the Championship with nine games remaining.
Since being relegated, Portsmouth are yet to return to the Premier League and are currently playing their football in League One.