Leicester are at risk of falling into English football’s third tier, a decade on from their stunning Premier League triumph, after being docked six points for breaches of financial rules on Thursday.
Relegated from the top flight last season, the sanction drops the Foxes from 17th to 20th in the Championship, leaving them above the drop zone only on goal difference.
An independent commission found that Leicester had breached the threshold under profit and sustainability rules for the three-year period up to the 2023/24 season, when they won promotion from the Championship, by nearly £21 million ($29 million).
In the three seasons from 2021/22 to 2023/24, the club posted losses of over £200 million.
Leicester City have said they are “disappointed” by the outcome of an Independent Commission after being handed a six-point deduction for breaches of profitability and sustainability rules covering the three-year period ending June 2024.
The case was heard in late 2025 after the Premier League brought action against the club. The matter had initially been investigated by the English Football League, as Leicester were competing in the Championship during the relevant season and were promoted at its conclusion, before being passed on to the Premier League.
In a statement issued on February 5. 2026 on its website, the club 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.”
Leicester noted that “the Commission’s findings significantly reduced the unprecedented scale of the sanction originally sought by the Premier League,” but added that “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 club welcomed elements of the ruling, stating: “We appreciate the Commission’s agreement with the Club’s position that compliance for FY24 should be assessed over a 36-month period – an important point both for the period in question, but also in providing the Club with certainty on its PSR/P&S compliance for FY25.”
It further said the panel “agreed there were no aggravating factors which should be applied to the sanction, which is something the Club had maintained throughout, and acknowledged the Club demonstrated a positive trend in its finances in FY24.”
Leicester concluded: “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.”