Watford are being investigated by the English Football League about allegations made by the Daily Telegraph on Monday.
The allegations are around Gino Pozzo’s takeover of the club back in 2014, and the alleged use of a forged bank letter.
Pozzo took over the Hornets from his grandfather Giampaolo, but now the EFL have launched a full investigation into the allegations.
Watford could face fine or points deduction
The Hornets were in the Championship at the time, and if the story is found out to be true then they could face a hefty fine or maybe even a points deduction.
And after the start to the season, where they sit ninth in the Premier League after nine games, it will be devastating for the club.
A spokesperson from the EFL told the Guardian: “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 spokesperson went on to tell the Guardian that the club have been “formally contacted” by the EFL to provide a “full and detailed response” to the allegations made.
Hornets contacted about allegations
Walter Mazzarri’s side have started well this season, picking up 12 points from their games so far, including an impressive 3-1 win over Manchester United.
And the spokesperson added: “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 released a statement in response to this, in which they said the club had “no prior acknowledgement of any concerns” of the “authenticity” document.
It read: “Watford Football Club was recently contacted by the EFL in relation to matters concerning a proof of funds document for £7m provided to the EFL by Hornets Investments Ltd in 2014 in order to ratify a change in Hornets Investments Ltd shareholding.”
It continued: “The club are taking this matter very seriously and has instructed independent solicitors to carry out and investigation into relevant matters and provide the EFL with the solicitor’s report early next month.”