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Reading FC 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 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.”
