The EFL has handed Birmingham City an immediate nine-point deduction for breaching Profitability and Sustainability rules, Sky Sports reports.
Birmingham are understood to have exceeded the £39m allowable losses over a three-year period.
The club’s accounts for the 2017/2018 campaign showed a loss of £37.5m for that single season.
Before the deduction, Birmingham were 13th in the Championship table with 50 points.
Losing nine points would drop them five places to 18th with 41 points, and leaves them five points above the relegation zone with eight games remaining.
Any punishment would be the first under EFL’s new Profitability and Sustainability rules, which were introduced at the start of the 2016/17 season.
Under the old Financial Fair Play (FFP) rules, QPR agreed a £42m settlement with the EFL in January 2018 and accepted a short-term transfer embargo, after overspending in the 2013-14 season.
Bournemouth and Leicester have also reached cash settlements for breaching FFP regulations.
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