West Ham United face paying massive damages in compensation to Sheffield United after an independent tribunal ruled against the Premier League club over the Carlos Tevez affair.

Kevin McCabe, the Sheffield United chairman, refused to be drawn on how much his club should get but reports suggest it could be as much as £30 million.

"I can confirm that both clubs have been notified of the ruling," McCabe said this morning. "The arbitration panel has awarded in our favour. The matter is still legally in process so I do not wish to comment any further until we have completed that process."

Sheffield United argued that West Ham won at least three points inspired by Tevez during the 2006-07 season, when the club did not comply with Premier League rules over his registration. United have argued that this cost them relegation to the Championship and millions in lost revenue.

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A West Ham spokesperson said: "We need to digest the full findings of the arbitration panel and will consult our lawyers on the next steps we might take before making any further comment."

It is likely that the compensation package will be decided at another hearing on October 2, although this date is flexible. West Ham do not have the right to appeal to the FA over the ruling and are currently exploring their options

In April 2007 West Ham were fined £5.5m by an independent panel after they were found guilty over irregularities in the registrations of Tevez and Javier Mascherano.

However, West Ham were not deducted points and Tevez was cleared to play in the club's remaining games of that season. On the final day, the Argentina forward scored the winning goal against Manchester United, his current club, to confirm West Ham's Premier League status.

Sheffield United appealed the decision not to dock West Ham points, and went before an arbitration panel in July last year. Sir Philip Otton, the panel's chairman, said while he could not overturn the original decision, he would have done so had he been on the original panel.

An FA statement issued today said: "The dispute has been heard by a private independent arbitration tribunal set up under the FA's rules.

"The arbitration tribunal is comprised of one member nominated by each club, plus an independent member agreed upon by the two parties. All aspects of the arbitration, including publicity, are then a matter for the arbitration tribunal and the two parties concerned.

"For clarity, the FA did not sit in judgement on this case, did not have any influence on the decision and did not appoint any of the tribunal members.

There is no further right of appeal under FA rules."