Reading are the latest club to have been deducted points for breaking the English Football League’s financial regulations.
The Championship club agreed a six-point punishment with the EFL after they breached Profit & Sustainability rules, which permit a maximum loss of £39m across three seasons.
Reading have also accepted a suspended six-point penalty that would be triggered if they fail to comply with a business plan that’s been imposed.
Reading’s reported £41m wage bill in 2018-19 equated to 194% of turnover – for context, Blackburn Rovers posted 190% while Preston North End recorded 166% – and the EFL stated that the club exceeded permitted losses by £18.8m.
The six-point deduction leaves Reading 19th, four points above the relegation places.
As per league regulations, an ‘agreed decision’ ensures an outcome without the need to refer the matter to an independent commission.
On Monday, Reading announced the signing of the former England striker Andy Carroll on a contract until January, a deal that manager Veljko Paunovic described as ‘a great match’ for the club.
Reading have been limited to signing free agents and loans since being placed under a transfer embargo in the summer. Danny Drinkwater and Scott Dann were among those brought in without a transfer fee attached while the Royals recorded profits on the sales of Omar Richards and Michael Olise to Bayern Munich and Crystal Palace respectively.
They’re not the only side to have been deduced points this season, with the EFL confirming on Tuesday that Derby had been docked a further nine points after admitting to breaching rules over the £81m sale of their Pride Park stadium, leaving the division’s bottom club 18 points from safety.
Download the LancsLive app for free on iPhone here and Android here.
Don’t miss a thing from the club you love! For all the latest updates on Blackburn Rovers and Preston North End, sign up to our free newsletter packed with all the latest news here.