Birmingham braced for 12-point deduction over FFP breaches that would place club's Championship status under threat Birmingham City will appear at an English Football League hearing this week A 12-point deduction will send them plummeting down the Championship table Sources expect Birmingham to be sanctioned over breaches of FFP regulations The EFL are pushing for at least a 12-point deduction as well as a transfer ban By Matt Lawton for the Daily Mail Published: 22:31 GMT, 17 March 2019 | Updated: 22:31 GMT, 17 March 2019 Viewcomments Birmingham are bracing themselves for a 12-point deduction that will send them plummeting down the Championship table when they appear at an English Football League hearing this week. Lawyers representing both the club and the EFL are due to appear before a disciplinary panel, with the hearing scheduled to begin at an undisclosed location on Monday. While the verdict will ultimately be delivered by the panel, sources at the EFL fully expect the club to be heavily sanctioned for what they regard as serious breaches of their Financial Fair Play regulations. Birmingham are bracing themselves for a 12-point deduction over breaches of FFP rules Garry Monk's side sit 13th in the Championship table with a 14-point cushion between themselves and the relegation places. But the EFL are pushing for at least a 12-point deduction as well as a transfer ban, in what would be the most severe punishment since Leeds United were docked 15 points in 2007. Only this week, Birmingham became the first club in more than a decade to be charged by the Football Association over a violent attack by a fan on a player, following the shocking incident involving Aston Villa's Jack Grealish. But the club's Championship status will come under threat this week when the panel reviews the apparent financial chaos at St Andrew's. A 12-point loss would leave the club just two points above the relegation zone. The publication of Birmingham's annual accounts revealed a tale of excessive overspending In January the publication of Birmingham's annual accounts revealed a tale of excessive overspending. The accounts detailed a loss of £37.5million in the 12 months to the end of June 2018, in part due to a massive increase in wages from £22m to £38m during the managerial tenures of Gianfranco Zola and Harry Redknapp. It was reported that the club's wage-to-turnover ratio was £202 spent for every £100 brought in. The same accounts showed the club owed £73m to parent company Birmingham Sports Holdings, with net liabilities of £55m. Last season, the club were hit with a transfer embargo after exceeding the permitted losses of £39m in a three-year period, but then signed Danish full back Kristian Pedersen from Union Berlin for £2m in June 2018. The EFL said they were 'exceptionally disappointed' the club had ignored the embargo to sign the Under 21 international, initially refusing to register him. Two days before the start of this season, 'after consideration of the legal position between the club, player and EFL' Pedersen's registration was accepted. In January the publication of Birmingham's annual accounts revealed the extent of the club's problems and a tale of excessive over-spending. The accounts detailed a loss of £37.5million in the 12 months to the end of June 2018, in part due to a massive increase in wages from £22m to £38m during the managerial tenures of Gianfranco Zola and Harry Redknapp. It was reported that the club's wage-to-turnover ratio was £202 spent for every £100 brought in. The accounts detailed a loss of £37.5million in the 12 months to the end of June 2018 The same accounts showed the club owed £73m to parent company Birmingham Sports Holdings, with net liabilities of £55m. Last season the club were sanctioned with a transfer embargo after exceeding the permitted losses of £39m over a three-year period, only to then sign Danish full-back Kristian Pedersen from Union Berlin for £2m in June 2018. The EFL said they were 'exceptionally disappointed' that the club had ignored the embargo and signed the under 21 international, initially refusing to register him. Indeed it was only two days before the start of this season that 'after consideration of the legal position between the Club, Player and the EFL' the registration of Pedersen was accepted. Share or comment on this article: All rights reserved for this news site dailymail and under his responsibility