Manchester City and Chelsea are at risk of relegation from the Premier League after Everton's 10-point deduction for breach of profit and sustainability rule.

The deduction, according to a former financial advisor to the Champions, Stefan Borso, set a powerful precedent.

The Toffees have been left reeling by the deduction, which plunges them to second bottom of the table, and plan to launch an appeal.

City face 115 alleged breaches of the Premier League's financial rules and Chelsea could face scrutiny over alleged payments connected to former owner Roman Abramovich.

It was alleged that Abramovich, the Russian billionaire who owned the club for 19 years until he was sanctioned by the British Government last year, used offshore companies to make payments for the club.

The Premier League is already investigating the Blues after their new owners became aware of ‘potentially incomplete financial reporting’ linked to Abramovich’s era while completing due diligence as part of the takeover.

Borson, a lawyer who has advised City, tweeted after Everton's news broke on Friday "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."

Borson added "One thing is for sure, given the scale of this sporting sanction, Chelsea's calculus [in my opinion] that they could breach PL P&S [Profit and Sustainability] and just take a fine as a cost of doing business, must be in urgent and immediate reconsideration.

"The January window may be interesting. Even in the best case, they can no longer rely on being able to convince an Independent Commission to accept their Covid and Sanctions allowances as exceptional adjustments [to the extent that was the plan."

Back in February after City were charged with 115 breaches of the Premier League's financial rules regarding sponsors and contracts across a nine-year time span, Borson spoke of relegation being a potential sanction if they were found guilty.

He tweeted then: 'Alarmist or not, the sheer extent of the PL charges are at a level that IF found proven, must lead to relegation.'

Mail Sport journalist Nick Harris responded: 'Stefan is a former financial adviser to Man City, a Man City fan, a former banker, current lawyer, CEO & general counsel to a PLC dealing with allegations of historic accounting issues. Also well across FFP issues. So this is an interesting view.'

Everton were plunged to 19th in the Premier League table following their 10-point deduction for breaching Premier League profit and sustainability rules. 

The club was referred to an independent commission in March for alleged breaches which related to the 2021-22 season and a hearing took place last month.

The Premier League pushed for a sizable points deduction to set a precedent after the club were charged with breaching financial rules back in 2021-22. The Toffees posted staggering financial losses of almost £372million over a three-year period.