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Reading join Derby by confirming EFL points deduction

Reading join Derby by confirming their own set of EFL points deduction in what’s turning into a dismal week for English football.

The Royals have been deducted six points for breaching financial rules with the EFL stating that between 2017-18 and 2020-21, the Royals lost £57.8m – with the league’s limit for that period is £39m.

The club have a further six-point deduction suspended until the end of next season, provided they comply with a business plan.

It sees Reading drop from 16th to 19th in the Championship table with 16 points, four clear of the relegation zone.

Championship bottom six

The Berkshire outfit have been under a transfer embargo since the summer as a result of their breach of profit and sustainability rules.

It comes in the same week as the Rams were handed a nine-point deduction for breaches of the EFL’s profit and sustainability rules.

This was just months after Derby were handed a 12-point deduction for entering administration, meaning a 21-point deduction in total.

Derby sit bottom of the Championship table but now on -3 points, 18 points away from safety with only 29 games remaining in their 2021/22 season.


Reading Football Club can confirm that we have accepted a penalty of a six point deduction as a result of exceeding the EFL’s Profit and Sustainability limits.

The points deduction will be applied to our total with immediate effect.

A further six point penalty has been suspended until 2022-23. This will be applied if the club cannot fulfil an agreed business plan going forward.

The breach of regulations was calculated across a period of four years, two of which were unavoidably yet significantly impacted by the COVID-19 pandemic.

While there are undeniably extenuating and unforeseeable circumstances that have contributed to this breach, we accept this to be a fair and reasonable punishment and will learn the lessons from our recent past which have resulted in this deduction.

We would like to take this opportunity to thank the EFL for their co-operation, professionalism and positive, open dialogue throughout this process.

Our owner, Mr Dai Yongge, remains wholeheartedly committed to the club.

While travel restrictions have limited his opportunity to follow the team in person at the Select Car Leasing Stadium during the pandemic, he has watched every match live via Royals TV or international TV broadcast to Asia. However, he was at Bearwood Park watching training this morning, having flown in from Hong Kong, and he will be at the stadium to watch us take on Nottingham Forest on Saturday.

His commitment to our club remains unequivocal; having supported the club throughout a period of unprecedented disruption when key revenue streams for all clubs were suddenly severed, his investment has been overtly evident to all who visit our new multi-million pound Bearwood Park training complex – an environment tailored to attracting the best players to our club, helping our existing players flourish and ensuring our developing young players can reach their maximum potential.

We also know our supporters will remain committed.

In our anniversary season, we are reminded of this club’s incredible history. The hurdles it has overcome, the adversity it has faced and the success it has enjoyed as a direct result of tackling every twist and turn together.

Lessons will be learned. Now is the time to come together.

So, with two important home fixtures on the horizon, now we ask our fans to get firmly behind our first team as we collectively look to move forward with positivity and renewed purpose.

Thank you, as always, for your support.

Owner Mr Dai Yongge said, “As the owner of your club, I am naturally dismayed and disappointed to accept the punishment issued by the EFL. And as a fan, I too am hurt by a deduction of six points this season. However, my determination to succeed has not diminished but has amplified.

“My team and I believe this settlement is just and will still enable us to be competitive as a football club this season and beyond. So, in the short-term, our aim is to fight for every point there is to fight for this season.

“In the long-term, we pledge to fix the issues of the past and together build a club capable of competing with the very best and challenging for honours. But we can only do that with your support, so I would like to personally thank you for your loyalty to your club! It is truly appreciated by all who cheer on the Royals.”


Reading Football Club has been deducted six points from this season’s (2021/22) points tally, with a further six points suspended until the end of the 2022/23 Season, after admitting to breaches of the EFL’s Profitability and Sustainability rules (P&S).

It follows a review of the financial submission from the Club for the four-year period 2017/18 to 2020/21 where it was determined the Club had recorded a loss of £57.8m, £18.8m in excess of the £39.0m Upper Loss Threshold.

Prior to the determination of the sporting sanction, full consideration was given to all relevant factors, including the guidelines used in previous P&S cases and the mitigation put forward by the Club.

It was imposed in accordance with the terms of an ‘Agreed Decision’ which has formally been ratified by an Independent Disciplinary Commission Chair as per the requirements of EFL Regulations.

The ‘Agreed Decision’ is available here [https://www.efl.com/-more/governance/judgments-and-decisions/]

The Club has also agreed to adhere to a Business Plan focused on a number of financial targets, including controlling player-related expenditure, with the objective of moving the Club towards P&S compliance in forthcoming reporting periods.

The decision is final and not subject to appeal, with the Championship league table being amended with immediate effect.

Trevor Birch, EFL Chief Executive, said:

“The EFL’s Profitability and Sustainability rules are in place to discourage short-term overspending and it is appropriate that the League takes the necessary action on behalf of its membership when a transgression occurs.

“The League is satisfied that the sanction for the breach, being imposed by way of an Agreed Decision, is proportionate having considered all the relevant factors and will continue to work closely with the Club as it seeks to meet its obligations moving forward.”

Fans reacted as Reading join Derby by confirming their EFL points deduction…

@GlynBull: Come on lads, only 10 points off the play offs with 29 games still to play. Let’s make history 👀👀

@sam_utd: Take it and move on. We’re all behind you, up the ding

@jonnieharris99: Glad it’s been sorted. Can focus back on the pitch now.

@dingjoely: Good to get it over and done with. Could have been worse. Up the ding!

@Olly49572250: Don’t let this distract you from the fact that carrol is taking us up

@cjlsmith87: Better than expected & manageable. Hopefully Can get some key players back from injury & just consolidate this season. Now need to try & get as many of the squad tied down to new contracts if the EFL allow us to.

@tonydcfc73: Omg what a lack of consistency, you lot should be on the committee of a social club not the EFL, no structure or consistency whatsoever

@StuBlues: Shocking yet again. The sliding scale guidance (efl’s own guidance) says any breach over 15m will not receive a reduction in the 12 points, so why have agreed to reduce it by 6?

@WWoodbine74: You must be so proud @efl. Having to constantly punish clubs isn’t a sign the rules are working, it actually shows the opposite. You need to take a long hard look at yourselves, your rules and your actions.

@WestSussexRam: This is clear evidence of your agenda against Derby. Our combined loss over the allowed £39m was £12m over the same period v Reading £18m. We’re docked 9 points, Reading 6. Shame on you. @reluctantnicko something your paper could highlight?

@jack_w03: Just change your organisation name to something like english football point deductors because youre is a clearly not and never have been fit to be known as the efl

@dwcskyblue: Crooked Club and EFL not fit for purpose.

@Cj_covblaze: A couple of days after ratifying the Andy Carroll signing

@tonyjameson: Sign Andy Carroll, get deducted 6 points. It’s harsh, but fair.

@stuartalker: Make it up as you go along, why don’t you? Been hearing for weeks that Reading and the EFL have been “negotiating” this points deduction! 🤦‍♂️ I give up, honestly. 🤦‍♂️

@Houlton11: Great to get this out the way but a shame the clubs been run with no clear vision & by incompetent tossers since Dai took over, all the money no idea

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