Leicester City have been hit with a six-point deduction and have fallen to 20th in the Championship after being found guilty of breaching the Premier League's financial rules. The Foxes are now only outside of the relegation zone thanks to goal difference but could decide to appeal the sanction. The EFL has confirmed that Leicester have been docked six points, dropping them to 20th in the Championship, only outside of the relegation zone on goal difference. The governing body said in a statement: "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 verdict came from an independent regulatory commission and the case against Leicester has been ongoing since May.The Foxes could yet appeal the sanction, after it was ruled they breached Profitability and Sustainability Rules [PSR] for the 2023-24 season, when they were last in the Championship. Leicester have made combined losses of over £200m across the three-year, rolling period ending in June, and they are allowed to make losses of a maximum of £81m. The Premier League said: “Upon Leicester City’s promotion to the Premier League in 2024, the EFL’s investigation into the club’s alleged breaches of the P&S Rules transferred to the Premier League. Following an Arbitration Tribunal’s decision in March 2025 that confirmed the Premier League had jurisdiction, Leicester City were referred to an independent Commission in May 2025.“During a week-long hearing in November 2025, Leicester City raised a range of legal challenges regarding the applicability of the relevant Rules and the Commission’s ability to impose a sanction on the club, all of which were rejected.“These included a claim that the relevant rules were in breach of competition law. The Commission accepted the club’s submissions as to the length of the relevant assessment period and that a particular accounting policy relating to player costs should apply to reduce the club’s losses in its 2022 annual accounts.“Having done so, it determined that the club had breached the relevant P&S threshold by £20.8million over the three-year assessment period (2022-2024). The Commission found that the club’s refusal to provide its annual accounts to the Premier League by the relevant deadline was a breach of Premier League Rules.“It also dismissed a claim by the club that it had demonstrated exceptional cooperation throughout the proceedings.“Following agreement by the parties, and consistent with the relevant guidelines, the Commission agreed that the club’s improving financial position over the relevant assessment period was a mitigating factor.“Under EFL Regulations, as Leicester City is currently a Championship club, the EFL Board today ratified the Commission’s recommendation of an immediate points deduction.”Looking for smarter football bets? Get expert previews, data-driven predictions & winning insights with GOAL Tips on Telegram. Join our growing community now!Leicester are currently without a manager, having sacked Marti Cifuentes in January. The Foxes lost 11 of their 29 games under the Spaniard, and are still on the hunt for a new boss. They may have to expedite that process now they sit just ahead of the relegation zone. They have lost three of their last five games, and were beaten 2-0 by Charlton Athletic last time out. Add GOAL.com as a preferred source on Google to see more of our reportingLeicester play Birmingham City in a tough-looking fixture this weekend. Their opponents are 13th, and are unbeaten in their last five league games.