According to Lee Hoos, the club's chief executive, the loss was expected.
"It's a result of significant spending on the squad in a period where our income levels remained fairly stable," he told the club's official website.
"Since our relegation to League One the club has significantly reduced its cost base in line with the associated reductions in income."
Leicester are nine points clear at the top of League One and are firm favourites for an immediate return to the Championship.