Everton have been given an additional two-point deduction for a breach of the Premier League's profitability and sustainability rules (PSR), it was announced Monday.

The decision followed a previous six-point PSR penalty imposed on Everton and left the Merseyside club just two points above the relegation zone with seven games left to play this season.

"An independent commission has given an immediate two-point deduction to Everton FC for a breach of the Premier League's profitability and sustainability rules (PSRs) for the period ending season 2022/23," said a Premier League statement issued Monday.

"Over a three-day hearing last month, the independent commission heard evidence and arguments from the club in respect of a range of potential mitigating factors for its admitted breach of £16.6 million, including the impact of its two successive PSR charges.

"Having done so, the commission determined the appropriate sanction to be a two-point deduction, taking effect immediately."

The Premier League added the independent commission "reaffirmed the principle that any breach of the PSRs is significant and justifies, indeed requires, a sporting sanction."

Everton revealed an £89.1 million ($112 million) loss for the 2022/23 season in their financial accounts published last month.

The Toffees' losses were a significant increase from the 2021/22 season, when their accounts showed a £44.7 million deficit.

The Goodison Park club, now 16th in the table, have blamed the indefinite suspension of sponsorship deals with key commercial partners as mitigation for the increased loss.

The original six-point penalty imposed on Everton earlier this season breaches related to PSR breaches during the 2021/22 campaign.

Under PSR regulations, clubs can lose a maximum of £105 million over a three-season period, or £35 million per term, before facing sanctions.

Under-fire majority shareholder Farhad Moshiri said in March he remains confident the protracted takeover of the club by 777 Partners will be completed soon, with Everton aiming to move to a brand new stadium at Bramley-Moore Dock for the start of the 2025/26 season.

Everton, who have spent the past 70 years in the top flight of English football, said Monday in a statement they would appeal against the latest penalty.

"While the club's position has been that no further sanction was appropriate, the club is pleased to see that the commission has given credit to the majority of the issues raised by the club, including the concept of double punishment, the significant mitigating circumstances facing the club due to the war in Ukraine, and the high level of co-operation and early admission of the club's breach.

"Everton remains committed to working collaboratively with the league on all matters relating to PSR but is extremely concerned by the inconsistency of different commissions in respect of points deductions applied."

The statement added: "The club and its legal representatives have begun the preparations to appeal the commission's decision."

Everton's next play Chelsea at Stamford Bridge on Monday before facing fellow strugglers Nottingham Forest, who have been hit with a four-point PSR penalty of their own, at home on April 21.