Reading set to receive previously suspended points deduction that would have reprieved Peterborough United from Championship relegation

Posh have been caught up in developments on Thursday that have seen Reading set to be deducted six points from their Championship total this season.

The Royals were given a six-point deduction last season for breaching spending rules with a further six suspended until this season.

The penalty meant that they had to follow a strict EFL business plan to avoid that punishment, which they have now reported to have breached- which would trigger the suspended points deduction to come into effect.

It has been reported by the Daily Mail that they have failed to cut their spending sufficiently. The previous punishment was handed out after the club recorded a loss of £57.8m over the previous four-year period, £18m more than the maximum of £39m that is allowed by EFL rules.

The Royals finished in 21st last season, four points ahead of Posh in 22nd, therefore, had the points been deducted last season Posh would have stayed in the Championship.

The EFL disciplinary process has yet to begin at this stage, with submissions from Reading being taken but the club are also said to be facing allegations of breaching profit and sustainability rules and failing to pay wages on time in November.

An EFL statement said: “In November 2021, the EFL and Reading Football Club reached an Agreed Decision in respect of the Club’s failure to comply with the League’s Profit and Sustainability (P&S) Rules.

“As part of the decision, the Club is required to comply with the terms of a Business Plan up until the end of season 2022/23. The plan focuses on a number of financial targets with the objective of improving the Club’s financial performance.

“The League is currently reviewing submissions from Reading to determine whether compliance has been achieved.

“There will be no further comment on the matter at this time.”

Posh are not commenting on the matter at this stage.