The 2015-16 Premier League champions have fallen down to 20th in the Championship after the deduction, level on points with 22nd placed West Brom in the relegation zone.
Leicester were under investigation for breaching profit and sustainability (PSR) up until the 2023-24 Premier League campaign.
The investigation was handed to the EFL by the Premier League at the start of the season.
Leicester have since released a statement, saying: "While the commission's findings significantly reduced the unprecedented scale of the sanction originally sought by the Premier League, the recommendation remains disproportionate and does not adequately reflect the mitigating factors presented, the importance of which cannot be overstated given the potential impact on our sporting ambitions this season.
"We are now reviewing the decision in full and considering the options available to us.
"We remain committed to engaging constructively and ensuring that any action is fair, proportionate and determined through the appropriate processes."