Hatters' Championship rivals Reading hit with points deduction for exceeding EFL’s Profit and Sustainability limits

Luton's Championship rivals Reading have been deducted six points, with a further six points suspended until the end of the 2022/23 season, after admitting to breaches of the EFL’s Profitability and Sustainability rules (P&S).

The decision follows a review of the financial submission from the Royals for the four-year period between 2017-2021 where it was determined the club had recorded a loss of £57.8m, a figure £18.8m in excess of the £39.0m Upper Loss Threshold.

A statement on the EFL website said: "It was imposed in accordance with the terms of an ‘Agreed Decision’ which has formally been ratified by an Independent Disciplinary Commission Chair as per the requirements of EFL Regulations.

"The Club has also agreed to adhere to a Business Plan focused on a number of financial targets, including controlling player-related expenditure, with the objective of moving the Club towards P&S compliance in forthcoming reporting periods.

"The decision is final and not subject to appeal, with the Championship league table being amended with immediate effect."

EFL Chief Executive Trevor Birch said: “The EFL’s Profitability and Sustainability rules are in place to discourage short-term overspending and it is appropriate that the League takes the necessary action on behalf of its membership when a transgression occurs.

“The League is satisfied that the sanction for the breach, being imposed by way of an Agreed Decision, is proportionate having considered all the relevant factors and will continue to work closely with the Club as it seeks to meet its obligations moving forward.”

Reading over Mr Dai Yongge told the club's official website: "As the owner of your club, I am naturally dismayed and disappointed to accept the punishment issued by the EFL.

"And as a fan, I too am hurt by a deduction of six points this season.

"However, my determination to succeed has not diminished but has amplified.

“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.

"So, in the short-term, our aim is to fight for every point there is to fight for this season.

“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.

"But we can only do that with your support, so I would like to personally thank you for your loyalty to your club! It is truly appreciated by all who cheer on the Royals.”

The decision means that Reading, who Town visit on December 18, drop from 16th to 19th in the Championship table, now on 16 points, just four clear of the relegation places.

They are the second club to be deducted points this week, with Derby County facing certain relegation to League One, after being docked a further nine for breaching accounting rules.