Liverpool are reportedly at risk of facing a Financial Fair Play penalty after posting a loss of £49.8m for the 2012-13 financial year.

After the Merseyside outfit returned to the Champions League this season, their financial documents were passed over to UEFA, who allow clubs to post a maximum loss of £35.4m over a three-year period.

The Reds were only forced to abide by the rules of the Premier League, who allow a £105m loss over three years, in the 2012-13 campaign when they finished seventh, but after securing second place last season, their finances are believed to be under scrutiny.

According to The Times, Liverpool could face sanctions by UEFA and have their £7m Champions League prize money withheld while an investigation into a possible breach of FFP rules is pending.

Both Manchester City and Paris Saint-Germain were fined £48.9m and had their Champions League squads reduced to 21 players earlier this year for not abiding by FFP regulations.