Leicester charged by Premier League over alleged financial breach
Currently second in the Championship as they chase an immediate return to the Premier League after last season's relegation, Leicester could be hit by a points deduction if they are found to have broken the financial regulations.
"The Premier League has today referred Leicester City FC to an independent commission for an alleged breach of Profitability and Sustainability Rules (PSRs) and for failing to submit their audited financial accounts to the League," a statement said on Thursday.
"The alleged breach relates to the assessment period ending season 2022/23, when the club was a member of the Premier League.
"Leicester City were relegated to the EFL Championship prior to the introduction of the Premier League's new Standard Directions, which prescribe a timeline within which PSR cases should be heard.
"Therefore, the proceedings will be conducted in accordance with a timetable to be set by the independent commission, and its final decision will be published on the Premier League's website."
Leicester have not made their accounts for their last season in the Premier League publicly available.
The Foxes lost £92.5 million ($117 million) in the 12 months up to May 2022 and reported a pre-tax loss of £33.1 million a year earlier.
Premier League rules allow clubs to make losses of £105 million over a three-year period or £35 million per season.
Leicester also face a financial investigation from the English Football League, who govern the three tiers below the Premier League.
"Leicester City is surprised at the actions the Premier League has taken today," the club said.
"The club is extremely disappointed that the Premier League has chosen to charge LCFC now, despite the club's efforts to engage constructively with the Premier League in relation to the matters that are the subject of this charge, even though LCFC is not currently a Premier League club.
"LCFC remains willing and eager to engage constructively with the Premier League and the EFL to seek the proper resolution of any potential charges, by the right bodies, and at the right time.
"The club continues to take careful advice about its position and, if necessary, will continue to defend itself from any unlawful acts by the football authorities, should they seek to exercise jurisdiction where they cannot do so, as occurred earlier this year."
Nottingham Forest were deducted four points this week after being found to have broken Premier League financial regulations, which plunged them into the relegation zone.
Everton had an initial 10-point deduction for breaching profitability and sustainability rules reduced down to six following an appeal, but are also still waiting the result of a hearing into a second charge.