Barnsley's League One rivals Reading hit with points deduction as EFL call for owner to take action

Barnsley’s League One rivals Reading have been hit with a two-point deduction, with a further two points suspended, for late payment of liabilities.

The club are still under the control of owner Dai Yongge, who has faced fierce protests from Royals supporters. Reading’s points tally has been immediately reduced, dealing a blow to their hopes of avoiding relegation to League Two.

It is the club’s second deduction of the season, after four points were docked for failure to pay wages on time. In total, the club have lost 18 points during Yongge’s ownership.

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The latest deduction has been imposed due to failure to meet HMRC payment obligations in accordance with EFL regulations. Reading will have their suspended deduction activated if the club fails to pay amounts owed to HMRC, other clubs or other football creditors by required dates until the end of the season.

Barnsley's League One rivals Reading have been hit with a points deduction. Image: Richard Pelham/Getty ImagesBarnsley's League One rivals Reading have been hit with a points deduction. Image: Richard Pelham/Getty Images
Barnsley's League One rivals Reading have been hit with a points deduction. Image: Richard Pelham/Getty Images

Yongge has been urged by the EFL to adequately fund the club or sell and has been fined £100,000. In a statement, Reading confirmed Yongge is proactively trying to sell the club.

Their statement read: “Reading Football Club can confirm an immediate two-point penalty has been applied as a result of persistent late payments to HMRC in 2023. This follows a decision of an EFL disciplinary commission yesterday.

“The club has also received a further suspended two-point penalty, which will be activated should there be any further late payments to HMRC or identified football creditors (EFL Regulations 52.6.1 to 52.6.3) this season. The points deduction will be applied to our Sky Bet League One total with immediate effect.

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F”urthermore, Mr Dai has been ordered to pay a £100,000 fine payable within twenty-one days. Should this money not be received 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.

“In September, the club was subject to a further three-point deduction as a result of a failure by Mr Dai to deposit an amount equating to 125% of the club’s monthly wage bill into a designated account, as ordered by a Disciplinary Commission in August 2023. This amount is still outstanding. Should this not be settled within 28 days of the decision, Mr Dai will be fined a further £100,000 and then another £100,000 should it not be settled within thirty-five days of the decision.

“The club can again confirm that Mr Dai is proactively trying to secure the sale of the club with negotiations continuing with various parties.”

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