Watford are currently under investigation from the English Football Leaguefollowing allegations claiming they supplied false financial documents to the football governing body.
The Telegraphhave reported Watford could face a heavy fine and a points deduction, with the allegations centring around a supposedly forged banking letter from around the time Gino Pozzo took over ownership of the club.
The letter was providing as evidence that the Italian businessman had enough money to acquire the football club, and allowed Pozzo to take complete control.
The document was fabricated to ensure it looked like it had been written by HSBC, one of the largest banks in the world, and was submitted to the Football League before the 2014-15 season, where Watford won promotion to the Premier League.
The Telegraph havereported they havesent a copy of the document to the EFL, also alerting HSBC and the police. The EFL have recently released a statement in regards to the allegations.
"We can confirm, following receipt of information from The Daily Telegraph, that we immediately commenced a disciplinary investigation into serious allegations made against Watford Football Club.
The club has been formally contacted by the EFL and is now required to provide a full and detailed response to the allegations. Once that response is received, it will be fully considered by the EFL and appropriate action will be taken under our rules and regulations.�
Watford could face a points deduction, although only two Premier League clubs have ever been docked points. Middlesbrough were deducted three points in the 1996-97 season for the unauthorised postponement of a fixture, while Portsmouth lost nine for going into administration in 2009-10. Both sides were relegated during those respective seasons.