The EFL have released a statement explaining how Reading breached their Buisness Plan and were docked six-points- including failing to raise enough player profits.

Originally hit with a deduction last season, the club had to hit certain targets in order to avoid a suspended second six-point deduction.

Rumours circulated last month that the club were in breach of this, and the EFL have today announced that the club will be docked said points.

In a statement, the governing body said: "Reading Football Club will be deducted six points from the 2022/23 Championship table, after the Club admitted that it has failed to comply with the budget restrictions imposed, following a previous breach of the EFL’s Profitability and Sustainability Rules (P&S).

"The points deduction is an activation of a suspended six-point penalty, which was set out in the terms of an Agreed Decision between Reading and the EFL in November 2021."

Delving deeper into the exact clauses broken, the statement goes on to say: "After reviewing information submitted by Reading in March 2023, it was determined the Club has breached the original Agreed Decision in two ways:

"I. The Club is relying on a ‘related party transaction’ in its P&S Submissions by seeking to include profit from a proposed sale of an investment to an entity controlled by the Club’s owner. This sale was not completed at the time of the Club’s P&S submissions on 1 March 2023. This is a breach of the original Agreed Decision, which makes clear that Reading needs to be P&S compliant without relying on player sales or related party transactions conducted after 1 March 2023. The Club has agreed it would not be compliant without the proposed transaction.

"II. The Club has not generated profit required from player sales in line with the budget which formed part of the original Agreed Decision."

The move drops the club from 18th to 20th, now just one point clear of the relegation zone heading into the final seven fixtures.