Championship side Reading has been handed a six point deduction with immediate effect after admitting to exceeding profit and sustainability limits, the English Football League said on Wednesday.
A further six point penalty was suspended to next season and will be applied if the club fails to fulfil an agreed business plan.
The EFL said the move followed a review of the four years from 2017/18 to 2020/21 “where it was determined the Club had recorded a loss of 57.8 million pounds ($77.98 million), 18.8 million in excess of the 39 million Upper Loss Threshold.”
Ten more people arrested over Old Trafford violence before Liverpool game
Reading, now 19th in the standings and four points above the relegation zone, is also under a transfer embargo for breaching the rules.
“My team and I believe this settlement is just and will still enable us to be competitive as a football club this season and beyond,” said Chinese owner Dai Yongge in a statement.
“In the long-term, we pledge to fix the issues of the past and together build a club capable of competing with the very best and challenging for honours.”
Reading announced this week that former England striker and now free agent Andy Carroll, once the most expensive British footballer, had signed a short-term contract with it until mid-January.