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Reading hit with six-point penalty after admitting to breach of EFL's profit and sustainability rules

Reading found to have lost nearly £20m more than permitted after EFL reviewed their accounts between 2017/18 and 2020/21; six-point penalty comes into effect immediately, with club dropping to 19th in the Championship and having no right to appeal


Reading have been deducted six points - with a further six suspended until the end of next season - after admitting to breaches of the English Football League (EFL)'s profitability and sustainability rules.

The penalty comes after a review by the EFL of Reading's accounts between 2017/18 and 2020/21 found they had lost £57.8m - £18.8m over the £39m threshold.

The six-point deduction will come into effect immediately, meaning Reading drop to 19th in the Championship table - just four points above the relegation zone.

The EFL's decision is final, with Reading having no option to appeal.

Trevor Birch, the 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."

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Highlights of Reading's most recent game - a 2-1 win at Birmingham in the Sky Bet Championship on November 6

As part of their agreement with the EFL, Reading have also agreed to follow a business plan focused on achieving a number of financial targets - including controlling player-related expenditure - with the objective of moving the club towards compliance of profit and sustainability rules in future.

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Reading said they had accepted the points deduction and that owner Dai Yongge remained "wholeheartedly committed to the club".

A club statement read: "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.

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"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."

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