Points Deduction Incoming!

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NathStPaul
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Points Deduction Incoming!

by NathStPaul » 21 Sep 2021 14:37

Looks as though we are going to end up with a 9 point deduction...... :shock:

https://twitter.com/JPercyTelegraph/sta ... 1598232581

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.

AthleticoSpizz
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Re: Points Deduction Incoming!

by AthleticoSpizz » 21 Sep 2021 14:50

Oh well

If that’s the case, expect Derby to be awarded plenty more deductions.

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Zip
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Re: Points Deduction Incoming!

by Zip » 21 Sep 2021 14:55

Can see it being 9 points but with 3 points suspended. Very disappointing but we can hardly complain given the shambolic running of the club

andrew1957
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Re: Points Deduction Incoming!

by andrew1957 » 21 Sep 2021 14:56

Nothing really new or surprising in that statement. We all know we broke the rules but part of the reason for that was Covid.

I am sure this is why we were under such a strict embargo and the reason we have agreed to that embargo in order to avoid a points deduction. And so personally I will be a tad surprised if we do get such a deduction but if we do no one can really argue that it is unfair as the club significantly overspent for many years.

Sanguine
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Re: Points Deduction Incoming!

by Sanguine » 21 Sep 2021 14:58

Frankly even 9 points would feel like getting away with it, given the numbers quoted in that passage. We've not even got close.

We can't blame COVID for having a wage bill double that of our turnover in 18/19.


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Pepe the Horseman
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Re: Points Deduction Incoming!

by Pepe the Horseman » 21 Sep 2021 15:00

Six wouldn't be too much to worry about imo, just means we probably won't win the league.

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genome
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Re: Points Deduction Incoming!

by genome » 21 Sep 2021 15:02

Pepe the Horseman Six wouldn't be too much to worry about imo, just means we probably won't win the league.


118 points instead of 124 8)

andrew1957
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Re: Points Deduction Incoming!

by andrew1957 » 21 Sep 2021 15:03

38 cup finals to go...............

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Hendo
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Re: Points Deduction Incoming!

by Hendo » 21 Sep 2021 15:04

Pepe the Horseman Six wouldn't be too much to worry about imo, just means we probably won't win the league.


Yeah, I think that 6 would be pretty manageable, certainly if Derby get the full compliment of 21.


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Zip
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Re: Points Deduction Incoming!

by Zip » 21 Sep 2021 15:04

andrew1957 Nothing really new or surprising in that statement. We all know we broke the rules but part of the reason for that was Covid.

I am sure this is why we were under such a strict embargo and the reason we have agreed to that embargo in order to avoid a points deduction. And so personally I will be a tad surprised if we do get such a deduction but if we do no one can really argue that it is unfair as the club significantly overspent for many years.


We have yet to see the accounts for 2020/21 which was the season mainly impacted by covid. It will be another big loss.
Any points deduction will be down to the ridiculous running of the club where wages were far greater than turnover.

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morganb
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Re: Points Deduction Incoming!

by morganb » 21 Sep 2021 15:05

If a 9 points deduction were applied now the table would be:

Swansea 7
Peterborough 7
Hull 5
Forest 4
Reading 1
Derby -11

We've still got to play all except Peterborough twice this season, so long as we take some points off of all those around us then hopefully we should be ok this season.

Reading will also have to agree on a future business plan. - Be interesting to see what this will be regarding contract renewals and new signings. How much of the slate gets wiped clean after a points deduction?

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Re: Points Deduction Incoming!

by Hound » 21 Sep 2021 15:14

Would definitely take 6

And even more so if it meant we could negotiate some new contracts

WestYorksRoyal
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Re: Points Deduction Incoming!

by WestYorksRoyal » 21 Sep 2021 15:15

morganb If a 9 points deduction were applied now the table would be:

Swansea 7
Peterborough 7
Hull 5
Forest 4
Reading 1
Derby -11

We've still got to play all except Peterborough twice this season, so long as we take some points off of all those around us then hopefully we should be ok this season.

Reading will also have to agree on a future business plan. - Be interesting to see what this will be regarding contract renewals and new signings. How much of the slate gets wiped clean after a points deduction?

Birmingham only got one, right?


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Silver Fox
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Re: Points Deduction Incoming!

by Silver Fox » 21 Sep 2021 15:16

Obviously hard to comment until something actually happens but if this does transpire what was the point of the transfer embargo? It will have punished us twice surely?

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Zip
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Re: Points Deduction Incoming!

by Zip » 21 Sep 2021 15:22

Given that Sheff Wed only got deducted six points in the end for breach of FFP I would hope our penalty would be no more than that.

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Snowflake Royal
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Re: Points Deduction Incoming!

by Snowflake Royal » 21 Sep 2021 15:24

Silver Fox Obviously hard to comment until something actually happens but if this does transpire what was the point of the transfer embargo? It will have punished us twice surely?

Forcing us to get out of the situation rather than continue to break the rules year after year after year. As we were clearly going to without enforcement.

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Re: Points Deduction Incoming!

by Hound » 21 Sep 2021 15:27

the embargo has us in a much better position to move forward on a sustainable level. Admittedly that means we have about 5 people under contract next year but then so be it.

Its encouraged us to use the youth and look harder for bargains and deals which we have done. Obvs the downside being is we're likely to lose the likes of Swift and Laurent on a free (we might have done anyway)

Its not been a bad thing imo. And it might save us from a more hefty deduction. Reckon 6 will be where it lands.

NathStPaul
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Re: Points Deduction Incoming!

by NathStPaul » 21 Sep 2021 15:32

What a sorry state of affairs. Sure it has already been mentioned but we are fortunate we have Derby who are going to get a bigger deduction than us and a selection of massively poor teams in the division who we can beat. We can also beat a lot of the better teams on our day too.

windermereROYAL
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Re: Points Deduction Incoming!

by windermereROYAL » 21 Sep 2021 15:33

Well if it`s going to happen get it done now, at least we will know what we need to do to catch up.

Sanguine
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Re: Points Deduction Incoming!

by Sanguine » 21 Sep 2021 15:33

Silver Fox Obviously hard to comment until something actually happens but if this does transpire what was the point of the transfer embargo? It will have punished us twice surely?


Won't it just have protected us from falling foul of the limits again?

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