Leicester City have been docked six points by the English Football League for breaching financial rules.
The deduction will be applied immediately meaning the Foxes fall from 17th to 20th in the Championship and are only outside the relegation zone on goal difference.
It comes after Leicester were charged by the Premier League in May for a profit and sustainability (PSR) breach in the three years up to 2023-24.
Leicester were relegated from the top flight last season and are currently without a permanent manager after Marti Cifuentes was sacked in January.
In a statement Leicester said they were “disappointed” with the decision, branding it “disproportionate”.
“While the commission’s findings significantly reduced the unprecedented scale of the sanction originally sought by the Premier League, the recommendation remains disproportionate and does not adequately reflect the mitigating factors presented, the importance of which cannot be overstated given the potential impact on our sporting ambitions this season,” the statement said.
“We are now reviewing the decision in full and considering the options available to us.
“We remain committed to engaging constructively and ensuring that any action is fair, proportionate and determined through the appropriate processes.”
Under PSR, Premier League clubs cannot lose more than £105m over three years but the figure is reduced by £22m for every season a club spends outside the top flight.
Leicester’s accounts for the period ending 30 June, 2024, showed a loss of £19.4m.
In their 2022-23 accounts Leicester confirmed an £89.7m loss while in the 12 months up to May 2022 they lost a club record £92.5m.
Those figures do not take into account ‘add backs’ – costs such as building infrastructure and investing in women’s football that the Premier League and EFL view as in general interests of clubs.
Despite being charged by the Premier League, the EFL took on the case following their relegation to the second tier.
