Reading are set for a points deduction after breaching EFL financial rules in recent seasons, according to national reports.

The Telegraph are reporting that the club 'could be docked six to nine points' after breaching spending rules.

It is the latest setback for the Royals as years of financial mismanagement begins to take its toll at the Select Car Leasing Stadium.

In April this year, the latest set of accounts were released by Reading, showing an eye-watering loss of £43.5m in the year ending June 2020.

In the accounts, figures revealed that the total spent on wages stood at 211 per cent of the club’s revenue, a fall on the 226 per cent recorded in the previous set of accounts.

The average wage of the club's first team stood at £17,460, with the total overall wage and salary bill (which includes all of the staff at the club) standing at £37.6m.

This led to the EFL placing the club under a transfer embargo for breaching profit and sustainability regulations.

The embargo led to Reading only being able to bring in loan signings such as Tom Dele-Bashiru and Baba Rahman and free agents such as Alen Halilovic and Scott Dann in the summer transfer window. 

If the points deduction goes ahead, Veljko Paunovic's side would be plunged into a relegation battle, despite the Royals accumulating seven points in the last three games. 

Derby County are also in line to receive a points penalty for financial breaches.

More as we get it.