Birmingham City have been deducted nine points by the EFL after they broke profitability and sustainability rules, the governing body has confirmed.
Garry Monk's side had been bracing themselves for official confirmation following a hearing on Monday, with the deduction now confirmed and immediately enforced.
That will see Blues drop from 13th to 18th place in the Championship and leave them five points above the relegation zone with just eight games to play.
A statement from the EFL said:
“The Profitability and Sustainability Rules, aligned with those in the Premier League, became effective in 2015/16. Season 2017/18 was the end of the first full reporting period with Birmingham City the only club found to have breached those requirements, when it incurred adjusted losses of £48.787 million, £9.787 million in excess of the permitted losses.
“The Disciplinary Commission had the opportunity to consider all relevant factors in reaching it's determination, including the club’s mitigation.”
The club have 14 days to appeal.
Monk's side currently have 50 points from their 38 games, so this sanction would take them to 41, with reports suggesting that the EFL had originally pushed for a 12-point deduction, which would have put them well and truly in the relegation mix.
EFL rules state that a club cannot lose more than £39million over a three-year period (£13million a year), with the club posting a £37.5million loss in the year ending June 2018 as their wage bill grew from £22million to nearly £38million.
This rise came following Gary Rowett's sacking in December 2016, with the club spending heavily under Gianfranco Zola and Harry Redknapp.
Leeds United visit St Andrew's on Saturday April 6.
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