(Reuters) -Leicester City have issued two legal proceedings against the Premier League and the English Football League (EFL), the Championship club said on Friday after being referred to a commission over alleged breaches in spending rules.
Leicester, who were relegated from the top flight last season, could face a points deduction after the Premier League referred them to an independent commission on Thursday.
The Premier League said Leicester had failed to submit their audited financial accounts, with the club saying they were "surprised and disappointed" by the decision as they were no longer a top-flight club.
"Leicester City has been compelled today to issue two urgent legal proceedings against the Premier League and the EFL," the club said in a statement.
"LCFC will be seeking that each of these proceedings is determined by an appropriate and fully independent legal panel."
Leicester also said the EFL had issued a public notification that they had been placed under a registration embargo pursuant to its Profit & Sustainability Rules (PSR).
"The EFL is aware that LCFC has disputed the EFL's entitlement to impose this constraint, which is both restrictive and premature, with more than a quarter of the club's 2023-24 reporting period remaining," it added.
Leicester had posted a club record loss of 92.5 million pounds ($116.53 million) for the 2021-22 season while they had posted a pre-tax loss of 33.1 million pounds the year before.
Premier League clubs are allowed to lose 105 million pounds over three seasons. Leicester have not yet made their accounts for the last season public.
If found guilty, Leicester could become the third club to face a points deduction for breaching Premier League spending rules after Everton and Nottingham Forest.
Leicester were Premier League champions in 2015-16, beating overwhelming odds to lift the title, while they also won the FA Cup in 2021.
But the club had a poor season in 2022-23, eventually finishing 18th to drop down to the second-tier.
They are well poised to make a return to the top flight with Enzo Maresca's side level on points with leaders Leeds United but with a game in hand.
($1 = 0.7938 pounds)