Reading Agrees Six-Point Deduction With EFL For Breaching Financial Rules

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Reading will be docked six points for violating the financial regulations of the English Football League. The EFL and the Championship team negotiated an agreement after the club broke profit and sustainability regulations, which allow for a maximum loss of £39 million over three seasons. They will also accept a six-point suspended penalty if they fail to follow a business strategy.

Reading’s wage bill in 2018-19 was £41 million, or 194 percent of turnover. The team will drop to 19th place, four points above the relegation zone, as a result of the six-point deduction. An “accepted decision” provides a result without the need to refer the case to an independent commission, according to league rules.

To avoid further sanctions, Reading will have to stick to a business plan for the rest of this season and next. After surpassing the permissible losses in 2018, Birmingham agreed to a business plan, which includes limiting player-related spending. Reading announced on Monday that Andy Carroll, a former England striker, has signed a deal until January.

source : guardian sport

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