Leicester City have been charged by the Premier League with allegedly breaking spending rules during their last three seasons in the top flight.
Leicester have been referred to an independent commission for breaching profit and sustainability rules (PSR) and failing to submit audited finances.
If found guilty the Championship high-flyers could face a points deduction.
The Foxes are also subject to a separate financial probe by the English Football League (EFL).
Leicester, who were relegated at the end of last season, said they are “surprised” and “disappointed” by the timing of the Premier League’s actions, when the club is not in the top flight.
The club added they would “defend” themselves “from any unlawful acts by the football authorities, should they seek to exercise jurisdiction where they cannot do so”.
“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,” the Foxes continued.
Leicester are yet to make their accounts for their last season in the Premier League publicly available, but in the 12 months up to May 2022 they lost a club-record £92.5m.
A year earlier, in the season that they lifted the FA Cup for the first time, the club reported a pre-tax loss of £33.1m.
Top-flight rules permit clubs to make losses of £105m over a three-year period, or £35m per campaign, before facing sanctions.
Leicester follow Everton and Forest
Both Everton and Nottingham Forest have faced similar charges relating to accounts up to 2022-23, with the Reds found guilty and hit with a four-point deduction on Monday.
Everton were docked 10 points in November – which was reduced to six on appeal – for previous PSR breaches, and are waiting on a potential second punishment relating to the assessment period ending with their 2022-23 accounts.
While both Premier League clubs were required to submit their accounts by 31 December under new rules designed to speed up the reporting process and ensure any penalties were imposed during a season when the alleged transgression took place, Leicester were not required to do so after dropping out of the league.
And because Leicester were not part of the Premier League when the ‘new standard directions’ were adopted, which also prescribe a timeline when cases should be heard, the independent commission will set the timescale.
It means that the case, including any appeals, could run beyond the end of this season and may see sanctions, if applicable, enforced next season.
A second financial probe
Leicester are now involved in dealing with two financial investigations, with the club the subject of an ongoing English Football League inquiry into a possible breach of PSR rules relating to the ongoing season.
The club were forecast to breach loss limits for the ongoing three-year term.
Leicester say they have “repeatedly demonstrated [their] commitment to the P&S rules through [their] operating model over a considerable period”.
In 2018 they had to pay the EFL £3.1m after settling a Financial Fair Play dispute from the 2013-14 season when the club won the Championship.
