Leicester files a lawsuit against the EFL and Premier League.

Following their referral to an independent commission due to suspected violations of expenditure regulations, Leicester City, a Championship team, announced on Friday that they have commenced two legal actions against the Premier League and the English Football League (EFL).

Following their relegation from the Premier League the previous season, Leicester may lose points as a result of the Premier League’s Thursday referral.

Following their announcement that they were no longer a top-flight team, Leicester expressed their “surprise and disappointment” at the Premier League’s announcement that they had neglected to submit their audited financial records.

In a statement, Leicester City stated that it was “forced today to issue two urgent legal cases against the Premier League and the EFL.”

“LCFC will be requesting that a suitable and an independent legal panel decide each of these proceedings.”

Leicester said that they had received notice from the EFL, in accordance with its Profit & Sustainability Rules (PSR), that they were subject to a player registration embargo.

It further stated, “The EFL is aware that, with more than a quarter of the club’s 2023–24 reporting period remaining, LCFC has contested the EFL’s entitlement to impose this constraint, which is both restrictive and premature.”

Leicester had a pre-tax loss of £33.1 million the previous year, and they had recorded a club record loss of £92.5 million ($116.53m) during the 2021–22 campaign.

A Premier League club may lose up to £105 million in three consecutive seasons. Leicester has not yet released their season-ending financial statements.

After Everton and Nottingham Forest, Leicester might be the third team to lose points for breaking Premier League spending regulations if proven guilty.

Leicester won the FA Cup in 2021 and the Premier League in 2015–16, defeating tremendous odds to win the championship.

However, the team had a dismal 2022–2023 season, ultimately placing 18th and falling to the second division.

With a game remaining with Enzo Maresca’s team tied for first place with Leeds United, they are in a strong position to return to the top division.