Leicester City, currently in the Championship, has received a six-point deduction after being found in violation of the EFL’s profit and sustainability (P&S) regulations for the 2023/24 season.
“Following a meeting, the EFL Board has confirmed that the penalty will be applied to the Championship table immediately,” the governing body stated.
Having been relegated from the Premier League last season, Leicester is now without a manager, as former head coach Marti Cifuentes was dismissed in January after a six-month tenure.
The sanction was recommended by an independent commission and subsequently approved by the EFL board this Thursday.
This commission was established under Premier League regulations last May, after an arbitration tribunal decided that the Premier League could take over the investigation of alleged EFL rule violations following Leicester’s promotion back to the top flight in 2024.
The commission found that Leicester had exceeded the permissible P&S threshold by £20.8 million ($28.4 million) over the three-year period concluding with the 2023-24 season.
Additionally, the commission noted that the club violated Premier League rules by failing to submit their annual accounts when requested.
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In response, Leicester City expressed disappointment with the independent commission’s ruling and stated the club would take time to consider its next course of action.
The club believes the recommended points deduction is “disproportionate” and does not sufficiently take into account the mitigating factors presented, which they emphasize are crucial for their sporting ambitions this season.
Last September, Leicester successfully avoided a points deduction related to alleged breaches of the Premier League’s profitability and sustainability rules (PSR) for the 2022-23 season after their appeal was upheld.
In that case, the appeal board ruled that the independent commission operating under Premier League regulations lacked jurisdiction over the club, as it determined that the 2022-23 accounting period concluded a month and two days after Leicester’s relegation from the Premier League.
PA contributed to this report.