Everton could allegedly face sanctions if they appoint Marco Silva as their next manager after his previous club Watford reported them to the Premier League for making an "unwarranted approach" to their former employee.
The Vicarage Road outfit later blamed Everton for unsettling their manager upon sacking him in January.
Amid reports that the Merseysiders are on the verge of bringing Silva in to fill their vacant managerial post, Watford have gone to Premier League arbitration and accused the Toffees of making an illegal approach for the Portuguese last year.
According to the Daily Mail, Everton could face disciplinary action, including a possible points deduction, if found guilty of any wrongdoing.
The report also states that Everton could be forced to pay Watford a seven-figure settlement fee if they end up choosing Silva as their next head coach.