Reading is the latest English Football League member to be hit with a points deduction totally 12 points, according to the Sportsmail.
Reading Agree to Points Deduction
The punishment for breaches of Financial Fair Play is split in half with six points taking effect immediately and a suspended six points deduction.
The latter part of the agreement will be triggered if Reading fails to comply with an accepted business plan for the rest of this season and the following campaign.
Reading breached financial regulations when their losses went further than £39 million over three years – the maximum amount for an EFL club.
The latest accounts showed the trouble Reading were in. They accumulated losses of £43.5 million and a wage to turnover ratio of 211%. This means that for every £1 that went into Reading’s pocket, £2.11 would need to be paid out at the same time.
Hit to the Season
Undoubtedly, the points deduction will have an impact on the season. Reading will move from 16th to 19th, but they will remain four points clear of the drop zone. With Derby County effectively relegated from their latest punishment, Veljko Paunović’s side will be aware that they are not yet in serious danger with only two relegation spots remaining.
Their form suggests they are an inconsistent team who should have enough to make up the points lost as long as they stay healthy. This particularly relates to the instrumental John Swift. The Chelsea academy graduate has been crucial to keeping Reading’s head above water with his eight goals and seven assists for the season so far.
However, circumstances in the Championship can change quickly, so it will be important that Reading put this setback behind them and look forward.