Everton have been docked 10 points, the heaviest punishment handed to a Premier League team, for breaching financial fair play rules.
The ruling leaves the club second from bottom, two points from safety.
Everton said they were “shocked and disappointed” by the decision after an investigation by an independent commission and would appeal. The appeal will be concluded before the end of the season.
Leeds, Leicester and Burnley have previously written to Everton’s prospective new owners, 777 Partners, warning they intend to sue for damages in the event of a guilty verdict.
All three clubs were relegated in the past two seasons when Everton narrowly survived.
Southampton, another relegated club, have also threatened to take legal action that collectively could run into tens of millions of pounds.
Built-in clauses relating to the purchase of Everton mean the price will drop for 777 Partners if the charges are upheld.