The decision leaves Albion six points above the Championship relegation zone with two matches to play, meaning they could be caught if they lose both their remaining games.

The EFL’s Club Financial Reporting Unit (CFRU) alleged the club had exceeded the permitted losses of £39million over the three-year period up to the end of the 2024-25 season.

The independent Club Financial Review Panel (CFRP) determined that the upper loss threshold had been breached and applied the penalty.

West Brom immediately released a statement saying they were considering their options regarding an appeal but added: “For now, we will settle this on the pitch.”

Albion said they disagreed with the CFRP’s findings and insisted the club were compliant with the league’s profitability and sustainability (P&S) rules.

“The decision does not state the amount by which the club is said to have exceeded the upper loss threshold,” the Baggies’ statement added.

“West Bromwich Albion has not been informed of the quantum of the breach, save that this is less than £2million. This is therefore the smallest ever breach of the P&S rules across the EFL Championship and the Premier League.”

West Brom said proceedings had been brought due to the CFRU taking a different approach to community development expenditure.

“Without the CFRU changing its approach to the community development expenditure, the club would not have breached the P&S rules. The club will continue to support the great work of the Albion Foundation and its community programmes,” West Brom’s statement added.

The decision on sanctions followed less than 24 hours after the end of the hearing. Similar decisions have taken weeks and indeed months to be reached following hearings.

West Brom’s accounts were submitted to the EFL in December, but they were not charged until the end of March.

The Baggies host promotion-chasing Ipswich on Saturday before finishing the season at relegated Sheffield Wednesday.