Reading threatened with second points deduction within 18 months after ‘EFL breach’

Reading have been threatened with a second points deduction within 18 months after an ‘EFL breach’, John Percy confirms on Wednesday.

The Championship side could be given another six-point deduction if found guilty of breaching the EFL’s business plan.

Paul Ince’s team are currently 14th, sitting 13 points ahead of the bottom-three, but the sanction would put them in danger of relegation.

It would also be a huge blow to the club, look over their shoulders for the latter stages of this campaign, rather that their comfortable second-tier position they had been aiming before this news dropped.

George Flood, an Editor for The Evening Standard and Reading fan, tweeted upon hearing the news: “I these new #readingfc reports are accurate then words utterly fail me. How on earth has that been allowed to happen?! Astonishing. Would put them right back in the mire with a tough schedule and surely no lifting of the embargo either. Clarification needed very quickly.”

Excl: #ReadingFC facing second points deduction in 18 months after EFL breaches https://t.co/p0TAoWmy3O

— John Percy (@JPercyTelegraph) March 1, 2023

The Royals were previously given a six-point deduction in November 2021 for breaking financial rules, with an agreement in place to a business program related to player-related spending.

But now it’s claimed that Reading has been found to have violated certain rules within that plan and are now in talks with the EFL about a mutually agreed punishment, just like the one they agreed to a few years ago.

The deduction will be in place if they are found guilty again by an independent disciplinary committee.

The Telegraph report states that Reading reported that their wage bill for 2018-19 was £40million, which is 194 percent of their turnover, with accounts showing the total accumulated losses was in excess of £138m for the next season, while their last pretax loss was £93m across a three year period.

Chinese investor and businessman, Dai Yongge, is the club’s owner having completed the takeover back in 2017, with The Tilehurst End (a fansite), posting the day of the potential points deduction report, an approval rating score regarding his ownership at 3.59/5 back in September, with it being an improvement from 2.15/5 in June 2022.

They thought the club made good progress behind the scenes with the arrival of a new head of scouting, January was quiet on the transfer front with one new signing made, but that’s expected given the business plan. There is a lack of progress regarding contracts, more likely to come latter stages of season/summer, with a number of players expected to leave.

Dai has made a good link with the local community and in the table, reading sit 14th with 44 points from 33 games played. Though, if this points deduction comes into effect, they would drop to 19th and just seven points above the drop zone.

SEE MORE: Birmingham respond to EFL charges with club facing points deduction for breaching rules

Feature image for this article by groundhopping_glen on Instagram

This is what fans said as Reading are threatened with a second points deduction within 18 months after an ‘EFL breach’…

@ArlenPettitt: Reading FC are the worst at cheating. Don’t break financial rules to win titles and promotions, break them to sit in mid-table obscurity.

@Jordo_Grittt: The only hope is that it’s only 6 points… #readingfc

@ManOnPod_Martyn: Oh good I was getting worried we wouldn’t have a relegation battle to the end this year

@Nathan_adamsss: So the EFL had to approve all of our transfers and made us delay signings (sarr) so we could balance the books then they decide we haven’t been following the plan and another deduction is necessary? Something seriously doesn’t add up #readingfc

@JH7123: The EFL insisted on approving every single signing we have made for 2 years. If we have somehow breached this, surely it is the EFL who are culpable here? #readingfc

@I_am_Adz: I cant remember the last time relegation wasn’t decided by some sort of point reduction 🤪

@Milesyyy12: Don’t even fucking piss me off

@Jamie_Hodder21: This is standard from the EFL. We tried to relegate #ReadingFC over the last few years so how can we make it happen now?

@SeanMobsby: Who do we send money to in order to get a “fuck the EFL” banner for the stadium? @EFL 🖕 #readingfc

@SarryHands: Really would love to hear from the EFL the specifics on how we’ve broken the absolutely insanely strict business plan we’ve had to put in place to even forge a squad the last two seasons. We go a £1 over budget? Joke of a corporation #readingfc

@DanFromTheDing_: It’s that time of the year again. 6 points down, who gives a fuck, we are Reading and we’re staying up. #readingfc

@pott95: Come on then chaps @ReadingFC, please enlighten us into how we’ve not learnt from our previous lessons this time. Get someone who actually knows what they’re doing in charge at the top. #readingfc

@CScott___: How have the club allowed that? Absolutely pathetic. Fuck Bowen and Yongge #ReadingFC

@JH7123: The EFL insisted on approving every single signing we have made for 2 years. If we have somehow breached this, surely it is the EFL who are culpable here? #readingfc

@tommyrfc: If this is proven to be the case then I’m sure I won’t alone in being majorly pissed off with the club. I’ll wait for something more concrete mind

@Houlton11: Fans deserve club transparency now, statement must be made as this is appalling news #readingfc

@longlaneroyal: If this is true whoever is responsible at @readingfc for this breach has to be fired! They were warned and knew the rules yet still f****d it up! Beyond incandescent 🤬🤬🤬

@AlexFordyboi: Just as things were started to look up. Nothing less expected that the absolute shambles of club overheads in recent years.

@staggy68: f**k the EFL. Football is a joke they are coming after Reading again as we have overspent by £2.50 while the big clubs spend hundreds of millions with 8 year contracts and nobody does anything

@DCFCBrianPotter: Legal action 👀

@AndyRFCCharman: If we get relegated through the actions of EFL then I think I’ve had enough of professional football in this country. It’s rotten to the core & totally biased in favour of the big boys. One set of rules for them another for ‘tinpot clubs’ like #readingfc

@a_bs1871: Another relegation battle hook it to my veins 💉

Surprised #readingfc are at risk of another points deduction, given how much we’ve had to go through to get signings ratified.

Need more info (not to mention a final judgment on a deduction) before judging too much though.

— The Tilehurst End (@TheTilehurstEnd) March 1, 2023