League One club Reading have been docked three points after failing to comply with an order designed to protect payments to staff.
An independent disciplinary commission had ordered the Royals’ ownership to deposit a sum equal to 125 per cent of the club’s forecast monthly wage bill into a designated account by Tuesday.
The commission had imposed the order after determining last month that the club had failed to pay player wages on time and in full on or around October 31 and November 30 last year, and on April 28 this year.
As a result of those missed payments, the commission docked Reading one point, with a further three suspended, a sanction which has now been triggered by the failure to deposit the funds requested.
An EFL statement said: “The EFL continues to acknowledge the negative impact sporting sanctions are having on the football club and remain extremely disappointed and frustrated at the club’s ownership to meet its ongoing obligations under EFL regulations. The League will continue to apply its rules in all circumstances deemed appropriate.”
The club released their own statement confirming the activation of the three-point penalty, which concluded: “As communicated to our supporters previously, Mr Dai (Yongge, the club’s Chinese owner) is currently undertaking an ongoing process of seeking sources of stable external investment for the football club, with the aim of mitigating the risk of cashflow complications arising in future.”
The latest points penalty means that the Royals fall to 21st position in the League One table. They have won two of their opening six matches but have now lost four points in total which leaves them in the relegation zone.
Reading have found themselves in more trouble over staff payments— (The FA via Getty Images)
Disillusioned Royals supporters have set up a fan group to protest the running of the club called Sell Before We Dai. And they issued a statement in response to the latest points deduction.
The group’s spokesperson Nick Houlton said: “The hard work by the team and others at the club is being undermined by Dai Yongge’s continued failure to resolve the club’s affairs. Today’s announcement is a kick in the teeth for the team, staff and fans alike.
“To breach these conditions immediately indicates serious liquidity issues going forward. We urge Dai to step up his search for a new owner and listen to offers. Only last month, the EFL specifically called out Dai Yongge, saying it was extremely frustrated at the consistent failures under his ownership.
“Points deductions and transfer embargoes punish fans, not owners. We urge the EFL to concentrate on personally holding Dai Yongge to account for his continued mismanagement of the club.
“As for the new season, we now find ourselves in the relegation zone as a result of one person’s repeated failure to manage the club’s affairs properly.”
