Reading are set to be deducted between six and nine points by the English Football League for breaching financial rules. The Championship club are under embargo for breaching profit and sustainability regulations and are in talks over agreeing a sanction that could drop them into the relegation zone. Crisis-hit Derby County are also in line to receive a points penalty for financial breaches.
The embargo placed on Reading in the summer limited them to free transfers and loans, with Danny Drinkwater arriving from Chelsea last month. Profit and sustainability rules permit a maximum £39m loss across three seasons. Reading’s reported £41m wage bill in 2018-19 equated to 194% of turnover.
Derby are set to be deducted 12 points upon formally entering administration and stand to be deducted a further nine points, and given a suspended three-point deduction, for a separate breach of the EFL rules. Derby were ordered to resubmit their 2015-16, 2016-17 and 2017-18 accounts after being found to have broken accounting regulations.
Reading, who were taken over by the Chinese investor Dai Yongge in 2017, were relegated from the Premier League in 2013. In an open letter to supporters last month, Reading confirmed they were in “positive, constructive dialogue with the EFL”. The statement said the club was “making progress” and reaffirmed Yongge’s commitment.
Under EFL rules a formal disciplinary process is avoided if a club and the league agree on a punishment. Reading have been approached for comment.