Leicester City has been handed a six-point deduction by the English Football League after being found in breach of financial regulations.
The sanction takes effect immediately and drops the club from 17th to 20th place in the Championship standings.
As a result, the Foxes sit level with teams in the relegation positions and are currently outside the bottom three only on goal difference.
The case was concluded by an independent commission, which confirmed that a sporting penalty was unavoidable under the relevant rules.
Background to the financial breach
The issue stems from a profit and sustainability rules charge first brought by the Premier League in May, covering a three-year accounting cycle up to the end of the 2023-24 season.
Leicester, who were relegated from the Premier League last year, subsequently fell under the authority of the EFL, which assumed responsibility for the case.
Although the top flight originally had jurisdiction, the punishment has been imposed under EFL financial regulations following the club’s drop into the second tier.
Under these rules, clubs are restricted in how much they can lose over a defined period, with lower limits applied for seasons spent outside the Premier League.
Club response, finances and current situation
In a formal statement, Leicester described the outcome as “disappointing” and argued that the penalty was excessive given the circumstances.
The club said the commission reduced the scale of the punishment initially sought but insisted the final decision failed to give sufficient weight to mitigating factors.
Leicester confirmed they are reviewing the ruling in detail and are considering what next steps may be available through the appropriate channels.
Financial records show a £19.4m loss for the year ending June 2024, following deficits of £89.7m in 2022-23 and £92.5m in the previous 12 months, before allowable deductions.
The commission accepted a 36-month assessment window and calculated that the club exceeded the EFL threshold by £20.8m, opting for a six-point sanction rather than the maximum available due to signs of improvement.
On the pitch, Leicester are without a permanent manager after Marti Cifuentes was dismissed in January and have failed to win any of their last four league matches.
Interim coach Andy King will be in charge for Saturday’s Championship fixture away to Birmingham City.