Fears of further points deduction for Premier League rivals of Sheffield United

The Daily Mail are reporting that the deal for American private equity firm and prospective purchasers 777Partners to take over the Merseysiders will not be approved ahead of the new year.

Over £100million has been loaned to Everton to pay for running costs since the US firm brokered a deal with Farhad Moshiri in the autumn.

But 777 have reportedly said that the funding will not continue after the new year, with the loans based on the proviso that a decision would be reached by Christmas by the Premier League - which is said to be some way off.

It has raises fears of a potential points deduction in the new year for the troubled Toffees, with entering administration incurring a nine-point sanction.

Last month, Everton were docked 10 Premier League points for financial rule breaches - and thrown straight into the relegation fight alongside Sheffield United, Luton Town and Burnley.

The Toffees were handed the punishment - the biggest in Premier League history - by an independent commission.

The club have lodged their appeal with the Premier League's judicial panel, and an appeal board will now be appointed to hear the case.

The Goodison Park outfit admitted the breach but said they were ‘shocked and disappointed’ at the severity of the punishment.

Despite the penalty, Everton are outside of the relegation positions following three successive league victories, with Sean Dyche's side having won five of their last seven league matches.