The Premier League are reportedly preparing to issue their disciplinary charges as top-flight clubs discover if they are in danger of being hit with a potential points deduction.

On Tuesday, the Premier League will issue disciplinary charges against clubs found to have broken its profit and sustainability regulations (PSR), according to Sky Sports News.

The reporting period relates to the years between 2021 and 2024, during which time clubs would have posted their financial records in the public realm.

Under a fast-track process introduced 18 months ago, clubs that have recorded losses for the first two years of the reporting cycle were required to submit their accounts for the financial year ending June 2024 to the Premier League by December 31.

The Premier League has given its financial and legal departments two weeks to study the books of those clubs in danger of a PSR breach, with the final outcome now due to arrive.

It is not yet known whether any of the 20 clubs in the top flight are set to face punishment or if they have been informed as such. However, if a club is charged, they could be forced to pay a heavy fine or even get hit with a points deduction.

Everton, Leicester City and Nottingham Forest have all fallen foul of the regulations in the past after posting losses higher than the £105million allowed for the three-year period. That figure that is reduced by £22m for every season a club spends outside of the Premier League.

The importance of a December 31 cut-off point was effectively established in the summer of 2023 as it was argued that clubs could do further damage if they buy players in the January transfer window.

The Premier League’s announcement could impact clubs’ ability to make signings in the transfer window if they are found to be in excess of the £105m loss figure. But worse yet, clubs in the bottom half of the table may face being dragged into a relegation battle if a points deduction is applied.

Everton survived the drop in 2023-24 despite being docked two points after an independent commission found the club breached PSR rules by £16.6m to 2022-23.

Forest also stayed up last season after being deducted four points for exceeding the threshold by £34.5m.

Leicester successfully defended on appeal a charge from the Premier League in September that they had breached the PSR threshold by £24.4m for the three-year cycle ending in 2022-23.

Big-spending Chelsea and Newcastle, both contenders to qualify for the Champions League next season, have addressed their requirement to stay within PSR rules.

The Blues’ owners helped the club exploit how player contracts are amortised through long-term contracts, as well as selling off two Stamford Bridge hotels for a combined £76m to a sister company owned by the same proprietors.

Newcastle, meanwhile, have balanced the books through the sales of Elliot Anderson and Yankuba Minteh to Nottingham Forest and Brighton respectively before the June 30 deadline for 2023-24.

But it remains to be seen if any clubs are at risk of facing punishment when the Premier League make their judgments on January 14.