RUMOUR - Points deduction

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RG30
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RUMOUR - Points deduction

by RG30 » 21 Sep 2021 14:34

Reading are locked in talks with the Football League over a points deduction which is likely to plunge them into a Championship relegation battle.

Negotiations between Reading and the EFL are understood to be at an advanced stage, with an agreed sanction close to being finalised over breaches of financial rules.

It is understood that Reading, currently 14th in the table, are facing a potential deduction of six to nine points, which will drop them into a relegation scrap if, as expected, the punishment is applied later this year.

Like crisis-hit Derby County, Reading are working to the EFL’s regulation 85 in their sanctions, which allows both parties to strike an amicable settlement and avoid going before a disciplinary commission. Reading will also have to agree on a future business plan.

In July it was announced that Reading had broken the EFL's profit and sustainability rules and they were placed under a transfer embargo, which restricted them to signing only free agents and loans during the summer window.

The rules do not allow clubs to exceed losses of £39 million over a three-year assessment period, but it appears Reading’s accounts have breached that amount by some distance.

In the 2018/19 season it was reported that Reading’s wage bill was £40m, working out as 194 per cent of their turnover.

For the following campaign their accounts revealed total accumulated losses of £138m, while their most recent pre-tax loss was £93m over a three-year period.

Relegated from the Premier League in 2013, Reading have operated in the Championship for the past nine seasons.

The club is owned by Dai Yongge, a Chinese businessman and investor who completed his takeover in 2017 and has conducted no media interviews in that time.

Last month Reading issued a statement to reiterate Yongge’s commitment and confirmed they “remain in positive, constructive dialogue” with the EFL.

Managed by Veljko Paunovic, Reading face Middlesbrough at home in the Championship on Saturday.

On Tuesday the EFL declined to comment. Reading were also unavailable for comment.


https://www.telegraph.co.uk/football/2021/09/21/reading-set-points-deduction-breaching-efl-finance-rules/

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Pepe the Horseman
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Re: RUMOUR - Points deduction

by Pepe the Horseman » 21 Sep 2021 14:38

Fcuk.

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Caskeys Lovechild
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Re: RUMOUR - Points deduction

by Caskeys Lovechild » 21 Sep 2021 14:55

So many other clubs who have breached the FFP rules and faced zero sanctions over the last few years - yet we do it and we’re immediately bent over and told to brace ourselves.

Whilst I’m sure we’re banged to rights, handing out points deductions just after a pandemic seems a bit pointless - my understanding is that as many as half the teams in the league could be set for these deductions.

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Sutekh
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Re: RUMOUR - Points deduction

by Sutekh » 21 Sep 2021 19:07

Won’t really make a difference. Reading would be safe from relegation by more than 9 points this season and nowhere near promotion anyway so little difference to the season outcome. Going to be a bumpy ride getting there though.

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Snowflake Royal
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Re: RUMOUR - Points deduction

by Snowflake Royal » 21 Sep 2021 19:50

Caskeys Lovechild So many other clubs who have breached the FFP rules and faced zero sanctions over the last few years - yet we do it and we’re immediately bent over and told to brace ourselves.

Whilst I’m sure we’re banged to rights, handing out points deductions just after a pandemic seems a bit pointless - my understanding is that as many as half the teams in the league could be set for these deductions.

We've been doing it for about three seasons running. We've already been looked at for selling the stadium to the owner, and got away with that as ok. And this was our third summer transfer embargo.


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Re: RUMOUR - Points deduction

by Nameless » 21 Sep 2021 19:57

Snowflake Royal
Caskeys Lovechild So many other clubs who have breached the FFP rules and faced zero sanctions over the last few years - yet we do it and we’re immediately bent over and told to brace ourselves.

Whilst I’m sure we’re banged to rights, handing out points deductions just after a pandemic seems a bit pointless - my understanding is that as many as half the teams in the league could be set for these deductions.

We've been doing it for about three seasons running. We've already been looked at for selling the stadium to the owner, and got away with that as ok. And this was our third summer transfer embargo.


NOt sure we we’re ‘looked at’ for selling the stadium, we were mentioned in the press as a club who had sold their ground, but there was nothing in the sale that even looked dodgy unlike at Derby. There is no requirement for a club to own it’s ground (and there are others who don’t - I believe Chelsea own the stands but not the pitch at Stamford Bridge , Oldham don’t own their ground, Coventry didn’t own a ground for several seasons) There is also nothing that stops a private company selling anything it owns, to whoever it chooses.

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Re: RUMOUR - Points deduction

by Snowflake Royal » 22 Sep 2021 08:14

Nameless
Snowflake Royal
Caskeys Lovechild So many other clubs who have breached the FFP rules and faced zero sanctions over the last few years - yet we do it and we’re immediately bent over and told to brace ourselves.

Whilst I’m sure we’re banged to rights, handing out points deductions just after a pandemic seems a bit pointless - my understanding is that as many as half the teams in the league could be set for these deductions.

We've been doing it for about three seasons running. We've already been looked at for selling the stadium to the owner, and got away with that as ok. And this was our third summer transfer embargo.


NOt sure we we’re ‘looked at’ for selling the stadium, we were mentioned in the press as a club who had sold their ground, but there was nothing in the sale that even looked dodgy unlike at Derby. There is no requirement for a club to own it’s ground (and there are others who don’t - I believe Chelsea own the stands but not the pitch at Stamford Bridge , Oldham don’t own their ground, Coventry didn’t own a ground for several seasons) There is also nothing that stops a private company selling anything it owns, to whoever it chooses.

We very obviously sold the ground and other assets to get around massively overspending. Those reports were fairly reliable and it would only be sensible for the FL to look into it given the other shenanigans going on elsewhere and our well documented financial issues.

Nothing came of it because we didn’t dramatically inflate the price (like Derby) or put it in the wrong accounting period (like Wednesday).

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Re: RUMOUR - Points deduction

by Nameless » 23 Sep 2021 12:35

DO the league investigate the sale of players ? The ground is just another asset and selling it is a perfectly legitimate thing to do.
You seem to have changed your view from a cast iron ‘we were looked at’ to a much more vague ‘it would be sensible if’. There was nothing to see in the sale, there seems no evidence that the sale was investigated or we were asked to explain a simple business transaction. There is as much chance that we informed the league of the sale, the value and the buyer at the time and there were no alarm bells.
It’s easy for fans to stare things as facts when they are just their assumptions.....

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