Paul Ince's team is currently one point above the relegation zone in the Championship, as the club's rank has fallen from 18th to 20th with just total of 40 points following today's 6-point deduction.
This is due to the fact that they did not fulfil the requirements set out in a previously agreed plan with the EFL, which was put in place after exceeding the profit and sustainability limits in 2021. The initial violation resulted in a six-point penalty, with an additional six-point penalty suspended until this season, which has now been imposed - which subsequently - has thrown Reading into a relegation battle with just 7 games remaining in this current Championship campaign. Due to the breach, the Royals have been subjected to a transfer embargo since the summer of 2021. The independent Club Financial Reporting Unit issued a statement on this matter:
"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." "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." "The EFL has been notified and will apply the sanction with immediate effect."