Everton icon Duncan Ferguson believes his old club will have no problem staying up - despite their 10-point deduction for breaching the Premier League’s profit and sustainability rules.

The Blues were docked 10 points on Friday after they were found to have breached profitability and sustainability rules for the three-year period ending in the 2021/22 season. The decision was made by an independent commission following a disciplinary hearing that took place last month.

Everton are expected to appeal against the punishment this week, believing it to be a 'wholly disproportionate and unjust sporting sanction'. The appeal must be heard and concluded before the end of the season.

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The punishment meant that Sean Dyche’s side dropped immediately from 14th in the table to second from bottom, with only goal difference separating them from Burnley. However, Ferguson believes the Blues have a good enough squad to still avoid relegation to the Championship.

"How good are they doing at the moment?" Ferguson, currently manager of Inverness Caledonian Thistle, told BBC Radio Scotland's Sportsound. Unfortunately, they got the points deduction, which I knew was coming, but they'll still be safe - they've got a good enough squad, no problem."

Everton supporters have raised more than £33,000 to go towards protests over their 10-point deduction, and Ferguson has backed them to "just keep supporting the club, as they always do".

He said: "They are the most loyal supporters in the land. They have had a few knocks over the years, to say the least.

"They are a resilient bunch, the Scousers down there, and Everton will be well safe this year.

"I don't know the ins and outs of what the problem is, but 10 points does seem heavy. Obviously, they will appeal it, and hopefully they can get that reduced."