Leicester City have been docked six points by the English Football League for breaching financial rules.

The deduction will be applied immediately meaning the Foxes fall from 17th to 20th in the Championship and are only outside the relegation zone on goal difference.

It comes after Leicester were charged by the Premier League in May for a profit and sustainability (PSR) breach in the three years up to 2023-24.

Leicester were relegated from the top flight last season and are currently without a permanent manager after Marti Cifuentes was sacked in January.

In a statement Leicester said they were "disappointed" with the decision, branding it "disproportionate".

"While the commission's findings significantly reduced the unprecedented scale of the sanction originally sought by the Premier League, 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 statement said.

"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."

Under PSR, Premier League clubs cannot lose more than £105m over three years but the figure is reduced by £22m for every season a club spends outside the top flight.

Leicester's accounts for the period ending 30 June, 2024, showed a loss of £19.4m.

In their 2022-23 accounts Leicester confirmed an £89.7m loss while in the 12 months up to May 2022 they lost a club record £92.5m.

Those figures do not take into account 'add backs' - costs such as building infrastructure and investing in women's football that the Premier League and EFL view as in general interests of clubs.

Leicester are winless in their last four Championship fixtures, losing three. Interim head coach Andy King takes the Foxes to face Birmingham City on Saturday (15:01).

Despite being charged by the Premier League, the EFL took on the case following their relegation to the second tier.

Although the Premier League had jurisdiction, the Foxes have been sanctioned under EFL PSR rules.

Leicester had argued their case should be have been considered over a 36-month period rather than 37 months caused by a delay in submitting their accounts for 2023-24.

The commission ruled that it should be 36 months meaning the club's overspend of the EFL's rules during that period was £20.8m above the £83m limit.

Although a maximum 12-point penalty could have been imposed, the committee worked down based on Leicester's percentage overspend and settled on six in light of the club's "improving financial position" over the assessment period.

'The aim for this season is now survival' - analysis

Jack Rafferty, BBC Radio Leicester matchday presenter

After years of speculation and legal battles, Leicester have finally been given the points deduction that has been looming for so long. 

Given there was rumours suggesting the punishment could hit double figures, six points does not seem too bad in the end.

For a club that has insisted it is fighting for promotion back to the Premier League, a deduction of that size should be an inconvenience, a minor disruption in terms of their goals in the Championship.

And yet, the Foxes now find themselves just outside of the relegation zone, currently surviving on goal difference alone.

Recent performances and results, including home defeats to Oxford and Charlton in the last two weeks, have been those of a team in freefall anyway, even without a six-point deduction. 

Fans have been saying for weeks that the club is at risk of relegation to League One, something that is now reflected by the Championship table.

The silver lining is that the uncertainty is over. The team, the board, the incoming manager (whoever that might end up being) know exactly what they need to do to stay in the second tier. 

Fans have wanted this saga to be over, no matter what the consequences, and the aim for this season is now clear - survival. 

Let's hope they are up for the fight.