Reading are to be deducted six points for breaking the English Football League’s financial regulations. The Championship club agreed the punishment with the EFL after they breached profit and sustainability rules, which permit a maximum loss of £39m across three seasons. They will also accept a suspended six-point penalty that would be triggered if they fail to comply with a business plan.
Reading’s reported £41m wage bill in 2018-19 equated to 194% of turnover. The six-point deduction will leave the club 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.
Reading will need to comply with a business plan for the remainder of this season and next to avoid further sanctions. In 2018 Birmingham agreed to a business plan after exceeding the allowed losses and their plan included controlling player-related expenditure. On Monday Reading announced the signing of the former England striker Andy Carroll on a contract until January.
Paunovic said Carroll, who had been without a club since his release by Newcastle, was “a great match” for the club. Reading have been limited to signing free agents and loans since being placed under a transfer embargo. Danny Drinkwater and Scott Dann were among those brought in on frees in the summer. Reading, who were taken over by the Chinese investor Dai Yongge in 2017, were relegated from the Premier League in 2013.
The EFL and Reading declined to comment. On Tuesday the EFL confirmed 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.