Everton are at risk of an unprecedented 12-point deduction due to alleged breaches of the Premier League's Profit and Sustainability rules, according to a report.

A dark cloud has been lingering over Goodison Park since March, as the Premier League referred the Toffees to an independent commission over extortionate losses.

The division's FFP rules stipulate that teams can only record losses of up to £105m over a three-year period, whereas the Toffees have supposedly been down a staggering £371.8m in that time.

As such, severe sanctions could be coming the way of one of the Premier League's ever-present teams, who have only stayed up by the skin of their teeth in each of the last two seasons.

According to The Telegraph, the Premier League has recommended that Sean Dyche's are docked as many as 12 points if the breaches are proven, which would represent the largest deduction in the tournament's history.

Only Middlesbrough (three points in 1997) and Portsmouth (nine points in 2010) have previously faced similar punishment for such misdemeanours, with the former postponing a game against Blackburn Rovers without permission due to an illness decimating their squad.

Boro's three-point sanction ultimately played a huge part in their relegation, while Portsmouth's deduction came after they were placed into administration, and the 2008 FA Cup winners could not salvage their top-flight status either.

However, Everton are "robustly" defending their position and continue to insist that they have not broken any rules, with a previous club statement reading: "Everton strongly contests the allegation of non-compliance and together with its independent team of experts is entirely confident that it remains compliant with all financial rules and regulations.

"Everton is prepared to robustly defend its position to the commission. The club has, over several years, provided information to the Premier League in an open and transparent manner and has consciously chosen to act with the utmost good faith at all times."

News of a potential 12-point docking came mere hours after the club announced the death of chairman Bill Kenwright, but head coach Dyche is only viewing the possibility of a looming deduction as just another distraction.

"I think there are loads of stories out there nowadays, particularly things of this type. But at the end of the day, the commission will decide. And when they do, we'll find out," Dyche told reporters ahead of Sunday's Premier League game with West Ham United.

"To be honest, ever since I've been here there's been pressure. There's pressure on all sorts (of things) around Everton Football Club. We've been trying to stay calm within lots of different challenges here. I think we mostly have done.

"(We are) trying to get things right on the pitch or better, certainly, and trying to improve other areas of the club. There's so much noise here, to be honest.

"It's just another part of it. (We are) trying to change the noise into a more positive feel about the club - not just the team, the whole club. We're trying to work to do that. Every time you're just about getting there, another thing comes up. It's one of them things."

Everton head into Sunday's match lying 16th in the Premier League table with seven points, meaning that a 12-point punishment would plunge the Toffees to the bottom of the pile with minus five next to their name.