Everton face another hearing into their second breach of Premier League profitability and sustainability rules, raising the possibility of a third points deduction, after being docked two points for a £16.6m overspend up to 2023.

The financially troubled club were hit with their second points deduction of the season on Monday to leave Sean Dyche’s team 16th, two points above the relegation zone. But, owing to a dispute between Everton and the Premier League over stadium interest payments, the case remains unresolved and is expected to drag into next season.

The Premier League argues that Everton exceeded the permitted threshold of £105m over a three-year period by just over £23m up to June 2023. Everton, however, claim £6.5m of that loss relates to interest payments directly attributable to the club’s new stadium at Bramley Moore dock and admitted a breach of £16.6m. The independent commission that imposed the latest points deduction was able to rule only on the admitted breach and will consider the stadium interest dispute at a later date. A resolution is not expected until next season and will raise further questions over the integrity of this season’s relegation battle.

Everton would have been docked five points for their latest breach, plunging them into the relegation zone with seven matches remaining, but two points were taken off that starting point owing to the club being punished twice for overlapping years. An extra point was taken off for Everton’s early guilty plea and the loss of a £20m sponsorship deal on the club’s Finch Farm training ground with USM, a company owned by oligarch Alisher Usmanov, who was subjected to sanctions. Everton have already been docked six points for the four-year period up to 2022 and their second breach covered the three years from 2020-2023.

Everton were docked a record 10 points in November for a £19.5m overspend in the four-year period up to 2022 – two year’s figures were taken on aggregate due to the Covid pandemic – although that was reduced to six points on appeal.

Everton, who intend to appeal against the second punishment, claimed they were suffering double jeopardy with the second charge, as two of the three years involved formed part of their first breach. Unlike the English Football League, the Premier League does not have guidelines for dealing with financial periods already subjected to punishment. The club also believes the £105m threshold for losses over a three-year period is outdated and has not kept up with inflation in wages and transfer fees in football over the past 10 years. The Premier League plans to change the rules in August. That may come too late to preserve Everton’s proud top-flight status.

Everton said in a statement: “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 cooperation 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 Premier League said: “The independent commission reaffirmed the principle that any breach of the PSRs is significant and justifies, indeed requires, a sporting sanction.”

Everton will be at increased risk of administration should they suffer relegation. The latest set of accounts for the year ending 30 June 2023 revealed a loss of £89.1m and contained another warning over the club’s ability to continue as a going concern.

The accounts also disclosed that Everton, subject of a proposed takeover by the controversial US investment firm 777 Partners, have not secured the complete financing needed to finish the construction of their new stadium at Bramley Moore dock.