Leicester face a nervous wait to discover whether they'll be charged by the Premier League for breach profitability and sustainability rules (PSR), according to reports.
The Foxes - who sit 19th in the league table - were one of several teams who had to submit their financial accounts for the 2023-24 season on New Year's Eve.
This was due to the fact that the club - who secured promotion to the Premier League this season - have recorded financial losses over the past two years. According to The Guardian, Ruud van Nistelrooy's side will discover their fate on January 13th.
Should Leicester be handed a points deduction by the league - similarly to Nottingham Forest and Everton in the past - it would serve as a major blow to their survival hopes.
Back in September, the club narrowly escaped a Premier League point deduction after the newly-promoted club appealed a PSR decision. The club recorded pre-tax losses of £92.5m and £90m for the 2022 and 2023 financial years respectively.
The Foxes, who face a battle to survive this season, were staring down the barrel of a sanction after the league referred them to an independent commission in March over suspected offences.
Leicester then challenged the commission's jurisdiction to hear the case, which applied to a period of time when they were in the Championship and not in the Premier League, but the body dismissed this earlier this year.
The King Power Stadium side then took the case to an independent appeal board who later reversed the commission's decision, finding that the club did not breach PSRs for the assessment period ending June 30, 2023.
A statement released by Leicester, back in September, then added that the appeal board also found 'flaws in the drafting of the Premier League's rules'.
Clubs in the United Kingdom are allowed to report losses within a specified limit, beyond which they face sanctions such as fines or points deductions.
Leicester's financial troubles have been linked to their significant spending in recent years, both in terms of transfer fees and player wages.
They seemed set to face a fate similar to Everton, who received two separate points deductions for financial overspending during successive three-year periods.
Everton initially had a ten-point penalty reduced to six on appeal for breaches covering the 2021-2022 period.
However, they were later penalised with an additional two-point deduction for the subsequent period in 2022-23.
Leicester, having been charged by the Premier League in March, have been under scrutiny for exceeding the £105m loss limit for the financial period ending in 2022-23.
The case against Leicester City was then delayed after the club launched the legal challenge, arguing that the Premier League had no jurisdiction to charge them while they were competing in the Championship.
Premier League rules restrict clubs to losses of £105m over a three-year period if all those years were spent in the top flight.
Because Leicester were in the Championship last season their permitted losses for the current three-year cycle will be reduced by £22m, owing to the English Football League’s stricter spending limits.