Reading deducted one point by EFL for failing to pay players on time and in full
- Published
Reading were relegated from the Championship last season
Reading have been deducted one point by the English Football League for failing to pay their players on time and in full on three occasions last season.
The regulation breaches relate to instances on 31 October 2022, 30 November 2022, and 28 April 2023.
Reading, who on Tuesday won their first league game in six months, now have two points and drop to 18th in League One.
Owner Dai Yongge has also been fined 拢10,000 and ordered to deposit funds to avoid further breaches.
This is the second time the Royals have been docked points this calendar year, with the club also given a six-point deduction in April for breaching the terms of an agreed business plan - for a previous profit and sustainability rule breach.
They were relegated to the third tier at the end of last season and were again placed under a transfer embargo this summer, which was lifted earlier this month.
The latest penalty includes a further three-point deduction, which has been suspended.
Dai has been given 28 days to put 125% of the club's forecast monthly wage bill into a designated account. Failure to do that, or to pay wages on time until 30 June 2024, will mean the additional three-point deduction will be activated.
Reading blamed the delays in paying the wages - of one or two working days - on problems with transferring the money from Asia in time, and financial problems related to the Covid-19 pandemic which affected Dai's business in China.
However, the independent commission dismissed that argument and said neither the club or Dai provided a "sufficient or satisfactory explanation for the delays".
Non-binding EFL guidelines stated that a deduction of three points for each late payment breach could be made - though the EFL sought a four-point deduction, with a further four points suspended.
But Reading successfully argued that the three occurrences of late payment be viewed as one offence rather than three, based on previous cases involving Southend and Wigan.
"The EFL remains extremely frustrated at the consistent failures of the club's ownership to meet its ongoing obligations under EFL regulations, the consequences of which are having a negative impact for all those associated with Reading, particularly its staff members, supporters, and local community," a statement said.
Reading said that after being charged in June they "accepted the charges in principle".
"Our dialogue with the EFL and the independent disciplinary commission has been open throughout the process and, in accepting that the repeated late payment of wages is wholly unacceptable, we believe the punishment is just," a club statement said.
"The wage bill has been satisfied in full and on time for the last three months and, as recently communicated to supporters, our owner will continue to seek and secure reliable sources of stable external investment which will ensure cashflow complications do not arise and result in any further breaches of EFL regulations."