The league referred Everton to an independent commission in March for an alleged breach of its profitability and sustainability rules (PSRs).
Clubs are allowed to lose a maximum £105 million ($130 million) over a three-year period or face sanctions.
The punishment, the biggest sporting sanction in the competition’s history, leaves the Toffees 19th in the table.
The Premier League said in a statement: “The club admitted it was in breach of the PSRs for the period ending season 2021/22 but the extent of the breach remained in dispute.
“Following a five-day hearing last month, the commission determined that Everton FC’s PSR calculation for the relevant period resulted in a loss of £124.5 million, as contended by the Premier League, which exceeded the threshold of £105 million permitted under the PSRs.
“The commission concluded that a sporting sanction in the form of a 10-point deduction should be imposed. That sanction has immediate effect.”
Everton issued a statement saying they were “shocked and disappointed by the ruling”, announcing their intention to appeal.
- this article first appeared on AFP/ additional information by editor