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Points Deduction AGAIN
Posted: 01 Mar 2023 12:23
by RG30
Reading are facing the threat of a second points deduction in 18 months by the Football League.
The Championship club could be punished with sanctions after allegedly breaching the EFL’s business plan, following their six-point deduction in Nov 2021.
Reading were punished for breaching financial rules and agreed to a business plan related to player-related expenditure which the club would have to adhere to.
However, it is understood Reading have broken certain regulations in the plan and are in talks over an agreed punishment with the EFL.
Reading are under threat of being deducted another six points if they are found guilty by an independent disciplinary commission.
In the 2018-19 season it was reported that Reading’s wage bill was £40 million, working out as 194 per cent of their turnover.
For the following campaign their accounts revealed total accumulated losses of £138 million, while their most recent pre-tax loss was £93 million over a three-year period.
The club is owned by Dai Yongge, a Chinese businessman and investor who completed his takeover in 2017.
The EFL declined to comment on Wednesday.
Relegated from the Premier League in 2013, Reading are currently 14th in the Championship table with 44 points. A six-point deduction would currently see them drop down the table below Swansea, Hull, Stoke and Queens Park Rangers, as well as Birmingham City on goal difference.
As revealed previously by Telegraph Sport, Birmingham themselves are facing another charge by the EFL after a lengthy investigation into the club’s ownership structure, with the threat of further sanctions dependent on whether owners Birmingham Sports Holdings Limited (BSHL) have breached regulations by misleading them over the current set-up.
Birmingham were charged last month with allegedly breaking Owners and Director’s Test rules with the allegations including acquiring full control of the club without prior EFL approval.
“A number of individuals” are also facing potential punishment over a collapsed takeover bid last year with Paul Richardson, Maxi Lopez and former Charlton chairman Matt Southall all charged.
It is understood the three men all plan to contest the charges, which will be referred to an independent disciplinary commission later this year.
https://www.telegraph.co.uk/football/20 ... -breaches/
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 12:37
by morganb
How could we have been so stupid, though having said that I though all transfers etc. had to be approved by the EFL?
Interesting how the article makes it sound like the punishment will be applied this season.
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 12:48
by Nameless
morganb wrote:How could we have been so stupid, though having said that I though all transfers etc. had to be approved by the EFL?
Interesting how the article makes it sound like the punishment will be applied this season.
The EFL are all over the club, we’ve had to get anything we do approved by them.
The joint business plan was agreed between them and us and it’s possible the plan was simply unachieveable but they would carry some of the blame for that.
I’m not convinced , it’s obvious POSSIBLE for the suspended points deduction to kick in it’s hard to see how it might happen. It’s also hard to see how anything could be looked at before the end of the accounting year.
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 12:49
by Hound
Err what and how? We’ve scraped together a squad and surely worked with the EFL throughout. I can’t see how we could have been competitive if we’d done less than we have
Be very interesting to see details on this
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 12:50
by Pepe the Horseman
However, it is understood Reading have broken certain regulations in the plan and are in talks over an agreed punishment with the EFL.
This is the most worrying part. Absolute clowns.
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 12:51
by Coppells Lost Coat
If true - which I think atm its all hyperbole - it would prove that the EFL business plan was impossible to follow and its intention was to make sure we fail.
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 12:52
by Nameless
Pepe the Horseman wrote:However, it is understood Reading have broken certain regulations in the plan and are in talks over an agreed punishment with the EFL.
This is the most worrying part. Absolute clowns.
The Mail and the Telegraph are worse than clowns to be fair….
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 12:55
by Kitsondinho
Coppells Lost Coat wrote:If true - which I think atm its all hyperbole - it would prove that the EFL business plan was impossible to follow and its intention was to make sure we fail.
Exactly. The EFL isn’t fit for purpose!
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 12:55
by NathStPaul
Hopefully the breach is very minor and will be dealt with by the EFL with a slap on the wrist, can't imagine they'd give us the full punishment if we can demonstrate we have worked with them properly on all the major stuff.
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 12:57
by Pepe the Horseman
How are Genoa getting on? If they're forced to sign Puscas will that count towards this season?
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 12:59
by NathStPaul
Pepe the Horseman wrote:How are Genoa getting on? If they're forced to sign Puscas will that count towards this season?
Depends on the level of the agreement breach. If it is something we have already done that we were explicitly told not to do by the EFL it wouldn't matter.
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 13:02
by blythspartan
FFS I love this club but this news has just extinguished the light in the tunnel.
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 13:03
by Nameless
NathStPaul wrote:Pepe the Horseman wrote:How are Genoa getting on? If they're forced to sign Puscas will that count towards this season?
Depends on the level of the agreement breach. If it is something we have already done that we were explicitly told not to do by the EFL it wouldn't matter.
Doubt we could actually do anything the EFL had specifically told us not to, and if we had we would know about it because it would involve large sums of money.
We can’t sign players if the EFL don’t approve them and we can’t pay them more than the EFL sign off on. I really can’t imagine we’d have given Carroll some kind of off the books payment given he was happy here on pretty nominal wages.
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 13:03
by Brogue
Well, why have the EFL sanctioned our transfers if they thought it was going to break the agreed business plan
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 13:03
by Nameless
blythspartan wrote:FFS I love this club but this news has just extinguished the light in the tunnel.
It’s not news , it’s speculation.
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 13:04
by Nameless
Brogue wrote:Well, why have the EFL sanctioned our transfers if they thought it was going to break the agreed business plan
Maybe the alleged breach isn’t related to transfers ?
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 13:05
by NathStPaul
Brogue wrote:Well, why have the EFL sanctioned our transfers if they thought it was going to break the agreed business plan
It makes me think it is something extremely minor that the press have jumped on. They are doing what they always do which is to report the absolute worst case scenario RE: points deduction.
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 13:05
by Brogue
Nameless wrote:blythspartan wrote:FFS I love this club but this news has just extinguished the light in the tunnel.
It’s not news , it’s speculation.
Yeah but it’s from the telegraph not some shitty little news outlet. The likelihood of this being correct is more so than not.
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 13:06
by windermereROYAL
Can`t imagine it would be triggered this season with just 13 games to go, even if it is we only need 12-14 points
Re: Points Deduction AGAIN
Posted: 01 Mar 2023 13:09
by NathStPaul
Brogue wrote:Nameless wrote:blythspartan wrote:FFS I love this club but this news has just extinguished the light in the tunnel.
It’s not news , it’s speculation.
Yeah but it’s from the telegraph not some shitty little news outlet. The likelihood of this being correct is more so than not.
Nameless is in the denial stage of the 5 stages of grief I see.