Manchester City and Chelsea are facing the possibility of relegation from the Premier League, according to the Daily Mail.

This follows Everton’s 10-point deduction on Friday, which has set a powerful precedent.

The punishment has seen Toffees plunge to second bottom of the table, although the club is planning to launch an appeal.

City faces 115 alleged breaches of the Premier League’s financial rules and Chelsea is facing scrutiny over alleged payments connected to former owner Roman Abramovich.

A lawyer who has advised City, Stefan Borson, tweeted after Everton’s news broke: “Without seeing the judgement/award -10 points for Everton feels harsh for a straightforward FFP [Financial Fair Play] breach to me.

“But reinforces that sanctions against City [if proven] and now Chelsea [if charged and admitted on the off-books payments] will be potentially relegation inducing.”