Reading have been dealt a double blow by the EFL over this weekend as they were first handed a points deduction for next season by the EFL and have now lost a battle with the EFL over their future spending power, as revealed by Alan Nixon.
The club were told they face a points deduction over multiple regulation breaches, as they failed to pay players on three occasions throughout last season, the club can accept the charges or present the case to a disciplinary panel. The EFL stated that the club failed to pay their players in October, November and April last season.
This will be the third time in three years that the Royals have been issued a points deduction. In 2021, the club were given a six-point deduction due to them exceeding the permitted losses of £39 million over a three-year period. And in April, they were given a points deduction for failing to follow an agreed business plan put into place following a sustainability and profit breach. That points deduction eventually led to the club’s relegation from the Championship last season.
The club have been dealt a further blow after losing a fight with the EFL over how they can use the money obtained in a deal that sees the club selling land. The ruling means the club’s hierarchy will be unable to use the money the way they wished to. They will not be able to use the multi-million windfall to balance the books in future checks on spending, which will be carried out by the EFL.
The news deals a major blow as they prepare for their first season in the third tier this century, with the club reaching the Premier League in 2006. The club were hoping to have a larger budget than the rest of the division, but will now most likely have a significantly lower budget for transfers, as well as candidates while they continue their managerial search, with the deal to appoint Chris Wilder collapsing.
The side has areas which they need to strengthen, as key players departed the club following the end of their contracts, with players such as Lucas Joao, Shane Long and Scott Dann all moving on from the club.
Writer’s View
The news deals a significant blow to Reading, with the club not only preparing for a season where they will be hoping to return to the Championship but also still unsure who will be taking them forward as they look to achieve that goal next season. The club will have to focus on cheaper deals as they strengthen and may have to look elsewhere for managerial targets.