They become the latest Championship club to be docked points for financial reasons
SkyBet Championship side Reading are set to be handed a six-point deduction for breaking EFL financial rules, reports the Guardian.
The Royals have agreed to a punishment set out by the EFL after breaching profit and sustainability rules, due to exceeding the maximum loss of £39m across three seasons.
As a result, Reading have been deducted six points which sees them fall from 16th to 19th – four points above the relegation zone.
They have agreed to a suspended six-point penalty should they fail to comply with a business plan for the remainder of the season.
It is similar to what Birmingham City were forced to undertake in 2018 after they also exceeded the maximum amount of losses, with their business plan focusing on player-related expenditure.
Due to the financial restrictions imposed on Reading, Veljko Paunović has only been able to resort to signing players on free transfers and loans.
The most recent of those signings was former Newcastle United, West Ham United and Liverpool forward Andy Carroll, who joined on a free transfer on Monday (15 November) following his release from boyhood club Newcastle at the end of last season.
“I’ve come here to a fantastic training ground and a great club, and I’m looking forward to getting started.”
The first word from @AndyTCarroll! 💬
— Reading FC (@ReadingFC) November 16, 2021
The Royals also recently signed former Premier League winner Danny Drinkwater on loan from Chelsea, as well as ex-Crystal Palace defender Scott Dann on a free transfer.
As per the report, both the EFL and Reading have declined to comment on the news – which comes after fellow Championship club Derby County were docked a further nine points after admitting to breaching rules surrounding the sale of their stadium, Pride Park.
Related links:
- Gareth Barry charged by FA with breaching ownership rules
- US businessman writes to Derby fans announcing intention to buy club
- Cash-strapped Derby still owe Arsenal seven-figure sum for Krystian Bielik
