Leicester City lost six points for violating the EFL’s financial regulations.

Leicester City received a six-point deduction after an independent commission found the club breached the English Football League’s profit and sustainability rules for 2023/24.

The sanction, which was ratified by the EFL board on Thursday, drops Leicester from 17th to 20th in the Championship table, leaving them outside the relegation zone only on goal difference.

The commission concluded that Leicester exceeded the permitted P&S loss threshold by £20.8 million across the three-year assessment period ending in 2023/24. The club was also found to have breached Premier League rules by failing to submit annual accounts when requested.

The case followed a complex jurisdictional process. The commission was appointed under Premier League rules last May after an arbitration tribunal ruled that jurisdiction to investigate alleged breaches of EFL rules could transfer to the Premier League following Leicester’s promotion back to the top flight in 2024.

In a statement, Leicester said: “It is with disappointment that Leicester City acknowledges the independent commission’s decision and the club will use the time available to consider its next steps.” The club added that the points deduction “remains disproportionate” and “does not adequately reflect the mitigating factors presented,” warning of the potential impact on their sporting ambitions this season.

Leicester had previously avoided a points deduction for alleged breaches of Premier League profitability and sustainability rules for the 2022/23 season after an appeal was upheld in September 2024. In that case, an appeal board ruled the commission lacked jurisdiction because the accounting period ended more than a month after the club’s relegation from the Premier League.

In the current case, the Premier League initially recommended that standard EFL sanctioning guidelines be applied, which would have resulted in a 12-point deduction. It later proposed alternative methodologies, suggesting deductions of 12 or eight points depending on whether the assessment period covered 37 or 36 months.

The commission determined the applicable period was 36 months and ultimately imposed a six-point penalty. The Premier League had also cited Everton’s second PSR case as a potential precedent, which would have led to a seven-point deduction.