An announcement is expected ‘soon’ regarding a possible points deduction for Reading FC after the Club broke league spending rules.

National reports from September indicated the Royals were set to be hit with a deduction of up to nine points due to spiralling operating losses.

Championship clubs are not allowed to make losses of more than £39 million in three years but Reading’s operating losses over this period exceeded this figure.

The Supporters Trust at Reading (STAR) sat down with bosses at the Select Car Leasing Stadium to discuss the Club’s financial position earlier this month.

Minutes from their meeting revealed the management’s acceptance the Club broke the league’s spending rules and a points deduction is imminent pending an agreement with the English Football League (EFL).

STAR’s transcript of the meeting indicated Reading and the EFL are “amicably trying to negotiate” the severity of the penalty.

“A public announcement should be made soon”, the notes revealed.

The deduction would make Reading the second Championship club to be docked points this season after Derby County were hit with a 12-point penalty for entering administration in September.

Due to the financial situation at Reading, the Club was placed under a ‘soft transfer embargo’ by the EFL in the summer which limited who the Royals could sign.

It appears the financial hardships at the Club will also affect the contracts offered to players whose deals expire next summer, including star midfielders John Swift, Andy Rinomhota and Josh Laurent.

Notes from the meeting between STAR and Reading FC suggested new “contracts will be offered to players”, but there will be “limitations in the contract offers” the Club is able to make.

The Royals will “need to address the wage bill and make considerations on [players] with higher salaries”, the notes added.

STAR also asked the management team about owner Dai Yonnge, whose communication with the fans has been limited since he bought the Club back in May 2017.

In the Supporters Trust’s notes it was revealed Mr Dai “does not like publicity” and “is reluctant to communicate with supporters directly”, but he “watches every game home and away.”

STAR met with the Reading FC board on October 4. To view the full minutes of their meeting, click here