Birmingham City could reportedly be docked as many as 12 points by the EFL for allegedly breaking spending rules.

The Blues are said to have broken the regulations on profit and sustainability, while they have also come under criticism for signing defender Kristian Pedersen while under a transfer embargo.

According to a report in The Telegraph, the EFL is "determined to adopt a tough stance by pushing for a deduction of up to 12 points and a heavy fine" for the rule breaches in what is described as a "game-changing punishment".

A hearing on the issue in front of an independent panel is expected in the next two months, with a verdict following before Christmas, meaning that the points deduction could be imposed this season.

The Midlands side have narrowly skirted relegation for the last two seasons and have made a poor start to this campaign, taking four points from their opening six games to sit 20th in the Championship table.