What Premier League told clubs in letter warning about PSR and 'unusual transfer activity'

The Premier League has reminded Everton and Liverpool that they will be punished for deceitful playing trading - just days after several clubs conducted a string of unusual deals.

Everton are one of several Premier League clubs who have been scrutinised in recent days as they signed England under-20 international Tim Iroegbunam from Aston Villa for £9m, while academy graduate Lewis Dobbin moved to Villa Park in a similarly-priced deal.

Meanwhile, Villa are also finalising a deal with Chelsea for the signing of two-cap Premier League midfielder Omari Kellyman, who is expected to cost the Londoners in the region of £19m. Upon completion of the 18-year-old's move to Stamford Bridge, Ian Maatsen is expected to move in the other direction.

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As a result of such deals, all three clubs have been accused of trying to boost their finances to comply with the Premier League's Profit and Sustainability Rules before the end of the financial year on June 30.

Now, according to the Telegraph, the Premier League has written to all 20 clubs to remind them that they will be punished for transfer activity that is deemed fraudulent. The report adds the Premier League will be able to request details from clubs on how negotiations took place, to ensure the transactions were conducted in "good faith".

If in any case the Premier League decides that a transfer was not conducted at "arm's length", they will be able to impose fair market value rules on a deal to ensure there is no "false inflation" on transfers and commercial deals.

As a result, the Premier League can demand a return of a transfer fee, in full or in part, if it is judged that the fee has been inflated and the deal was not conducted in "good faith".