Reading hit with two-point deduction by EFL for failing to meet HMRC payment obligations

Reading have been hit with a two-point penalty deduction by the English Football League (EFL) for failing to meet HMRC payment obligations.

The League One club have already been deducted four points this season for the late payment of wages.

A new two-point deduction was confirmed by the EFL on Tuesday, with a further two points suspended, taking the total number of deducted points to six for this campaign.

Reading’s owner, Dai Yongge, has also been fined £100,000 for “his repeated failures to deposit an amount equal to 125 per cent of the club’s forecast monthly wage bill in a designated account”.

The EFL said in a statement: “If Mr Dai fails to comply with the prior order of the IDC to meet the deposit requirement within 28 days a further suspended fine of £100,000 will be activated and an additional fine of £100,000 will be imposed if the money is not received within five weeks.

“Mr Dai has demonstrated an unwillingness to support the club’s current financial commitments, in contrast to his approach following the change of control in 2017. That is creating significant uncertainty, and the current impasse has to be broken.

“Therefore, the league urges Mr Dai to provide his club with the appropriate resources needed while at the same time accelerating his efforts to sell his majority shareholding to new owners, so that everyone associated with Reading, including staff, supporters and the local community, can move on and prepare for a positive future.”

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Reading said in a statement that “Mr Dai is proactively trying to secure the sale of the club with negotiations continuing with various parties”.

Reading has faced multiple points deductions in recent seasons under the ownership of Dai. Additionally, Dai has previously been hit with sanctions for his management of the football club.

In January, Reading were handed a suspended three-point penalty after a pitch invasion by their fans caused their League One fixture against Port Vale to be abandoned.

That game was initially suspended after 16 minutes and then abandoned after Reading supporters refused to leave the Select Car Leasing Stadium pitch in protest at Dai.

Under Dai’s tenure, Reading’s total points deduction will now reach 18 with the addition of a new two-point penalty.

Reading incurred a four-point deduction this season due to delayed wage payments and failure to fulfil subsequent obligations. The EFL charged Dai with misconduct for not depositing the necessary funds, prompting a call in December for the Chinese businessman to face a 12-month disqualification from all football activities.

At the beginning of November, Reading were referred to an independent commission due to ongoing issues with non-payment of owed monies to HMRC. The EFL previously called on Dai to either sufficiently add funds or consider selling the club.

Dai has served as Reading’s majority owner since 2017, sparking continuous protests from fans over the past few seasons.

The fresh points deduction will see Reading move to 19th in League One. They are next in action at Carlisle on Saturday.

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(Warren Little/Getty Images)