Reading have been dealt a blow in their bid to stay in the Championship after being hit by a six-point deduction by the English Football League.
The club admitted they had breached the terms of an agreed business plan for a previous profit and sustainability rule infraction.
This is the first decision handed down by the independent club financial reporting unit (CFRU) and leaves Reading 20th in the Championship table.
They are now just one point above the relegation zone and in danger of dropping into League One at the end of the season.
‘Radical changes’ were implemented across the club, but these were not enough to avoid being sanctioned by the CFRU.
Reading were also given a six-point deduction two years ago for losing £57.8 million between 2017 and 2021 – the EFL’s limit for that period was £39m.
A further deduction was suspended until the end of this season on the basis of targets in the EFL’s business plan being hit.
Director of the CFRU, John Potterill-Tilney, said: “I would like to thank the club for its transparency and cooperation during this process and the club financial review panel for helping us deliver an agreed sanction in just over one month since submissions were provided.
“This decision and sanction, as confirmed by the club financial review panel in a short time frame, within the relevant season, will now give the club clarity to plan for the period ahead, on and off the pitch.
“The EFL’s regulations establish the CFRP as an independent panel with the responsibility of reviewing the financial performance of EFL clubs.”
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