The Premier League has charged Leicester City with breaches of its Profit and Sustainability Rules.
Since the back end of last year, the Premier League has started to take action against teams who have not complied with their rules, most notably posting more than a £105m loss over a three-year period.
Everton were deducted six points, after a successful appeal, for breaking such rules, while Nottingham Forest were docked four points for being £34.5m over their limited of £61m for a newly-promoted club.
Three days on from that punishment being handed out, the Premier League has taken action against Forest's East Midlands neighbours, who are currently competing in the Championship.
As well as it being alleged that Leicester broke Profit and Sustainability Rules, the Foxes have also been charged with failing to submit audited finances.
© Reuters
The development leaves Leicester at risk of being handed a points penalty should they secure a return to the top flight, Enzo Maresca's side currently sitting second in the Championship standings.
In the minutes after the charge was revealed publicly, Leicester responded with a strongly-worded statement, saying that they were "extremely disappointed" and would be prepared to respond to "any unlawful acts by the football authorities".
A club statement read: "Leicester City is surprised at the actions the Premier League has taken today. 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.
© Reuters
"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.
"LCFC has repeatedly demonstrated its commitment to the P&S rules through its operating model over a considerable period, achieving compliance while pursuing sporting ambitions that are entirely credible given the consistent success that the club has achieved in that time, both domestically and in European competition.
"As we continue to represent the club's position, we will continue to fight for the right of all clubs to pursue their ambitions, particularly where these have been reasonably and fairly established through sustained sporting achievement."
Leicester are yet to publicly reveal their latest accounts, but between June 2021 and May 2022, a loss of £92.5m was posted.
