Leicester City have been handed a six-point penalty for breaching profitability and sustainability regulations during the 2023/24 campaign, plunging the club into a desperate fight for survival.
The sanction, recommended by an independent commission, takes immediate effect and relates to the season in which the Foxes secured promotion to the top flight.
The punishment sees Leicester tumble from 17th position in the Championship down to 20th.
Only goal difference now separates them from the relegation places, with Blackburn Rovers, West Bromwich Albion, Oxford United and Sheffield Wednesday positioned below them in the table.
Leicester are now fighting to stay in the Championship
|PA
The Premier League confirmed that the commission determined Leicester had violated league rules by refusing to submit their annual accounts before the required deadline.
Furthermore, the panel rejected the club's assertion that they had shown exceptional cooperation throughout the disciplinary process.
A Premier League statement noted: "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."
The statement added: "It also dismissed a claim by the club that it had demonstrated exceptional cooperation throughout the proceedings."
However, the commission did recognise one factor in Leicester's favour, acknowledging that the club's strengthening financial situation during the assessment period constituted a mitigating circumstance.
Marti Cifuentes was sacked last month after a miserable campaign
| PAThis latest blow compounds a turbulent period for the club, with supporters increasingly directing their frustration at owners King Power over their management of the Foxes.
The timing proves particularly bitter for the Leicester faithful, arriving as they approach the anniversary of their remarkable 2016 Premier League title triumph, one of English football's most extraordinary achievements.
Now, rather than celebrating that historic feat, fans face the grim prospect of their club descending into the third tier.
The turmoil has already claimed managerial casualties, with Marti Cifuentes recently dismissed from his post.
Former title winner Andy King has assumed temporary charge whilst the club seeks a permanent successor.