The EFL have released a statement confirming they have handed Leicester City a points deduction for breaching the Profit & Sustainability Rules.
In November, a hearing took place in front of a panel following a lengthy legal battle involving Leicester City's spending in the the three-year reporting period ending with the 2023/24 season.
The spending period in question relates to Leicester City's promotion to the Premier League in 2024, with the club set to receive a damning points deduction if found to have breached the PSR rules.
In November 2023, Everton were handed a 10 points deduction in November for breaching PSR, later reduced to six points after an appeal, before being deducted a further two points in April, with Nottingham Forest also deducted four points in March.
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And after releasing a statement confirming that Leicester did in fact breach the rules, the EFL have confirmed how many points the former Premier League winners will be deducted.
In a statement released on the EFL website, Leicester City have been hit with a six-point deduction after being found to have breached the Premier League’s financial rules.
It read: "The EFL notes the decision of the independent Disciplinary Commission, appointed under Premier League Rules, which has confirmed that Leicester City FC breached the Profit & Sustainability Rules in the three-year reporting period ending with Season 2023/24.
"On consideration of all relevant factors, the Commission has recommended a deduction of six points.
"The EFL Board has met to consider the decision and determined that the sanction should be applied to the Championship table with immediate effect."
The punishment takes Leicester, who are currently 17th in the Championship table with 38 points, down to 20th place, level on points with West Bromwich Albion and Blackburn Rovers, and puts them firmly in the relegation battle.
It remains possible that Leicester or the Premier League could decide to appeal the decision, should either party contest the sanction.
As reported by The Telegraph, Leicester have made combined losses of over £200m across the three-year period.
This is more than double the PSR limit of of £81m over that period, with adjustments for deductions.
It is widely accepted that the summer of 2021, when Leicester spent over £50m on new signings without selling a star player, was the beginning of this period of financial decline.
Although they reached a Europa Conference League semi-final, Leicester failed to stay in Europe and eventually were relegated to the Championship in 2023.
In that 2022-23 season, it is reported that the wages-to-turnover ratio reached a breathtaking 116 per cent.
Meanwhile the likes of Youri Tielemans, Caglar Soyuncu and Jonny Evans were all allowed to leave the club as free agents.
Ben McCrum