Reading FC have been deducted three points from the 2023/24 League One table after the Club failed to comply with the order of an Independent Disciplinary Commission (IDC) which required them to deposit an amount equal to 125% of the Club’s forecast monthly wage bill in a designated account by 12 September 2023.
On 15 August 2023, the IDC had determined the Club had breached EFL Regulations related to the Club having failed to pay its players’ wages on time and in full on or around 31 October 2022, 30 November 2022, and 28 April 2023. The Club received a one-point deduction, with a further three points suspended.
As a result of this latest instance of non-compliance by the Club’s ownership, the suspended sanction has been activated and, as per the Commission's instructions, applied by the EFL to the League One table with immediate effect.
The EFL continues to acknowledge the negative impact sporting sanctions are having on the Football Club and remain extremely disappointed and frustrated at the Club’s ownership to meet its ongoing obligations under EFL Regulations. The League will continue to apply its rules in all circumstances deemed appropriate.
The Independent Disciplinary Commission’s Written Reasons can be viewed here.
"the order of an Independent Disciplinary Commission (IDC) which required them to deposit an amount equal to 125% of the Club’s forecast monthly wage bill in a designated account by 12 September 2023."
The interesting thing is whether they pay this month's wages on time.
Reading FC’s owner, Mr Yongge Dai, has been charged with misconduct after failing to comply with the order of an independent Disciplinary Commission which required him to deposit an amount equal to 125% of the Club’s forecast monthly wage bill in a designated account by 12 September.
The League considers these further proceedings against him personally are necessary given the repeated failings in meeting the Club’s funding requirements which have only a detrimental impact on the Club and its wider stakeholders.
This matter will now be considered by an independent Disciplinary Commission in accordance with EFL Regulations.
Reading Football Club has been referred to an Independent disciplinary commission (IDC) for continued non-payment of monies owed to HMRC.
The Club has defaulted in relation to the amount owed to HMRC for September and October 2023 and as a result is currently under a registration embargo.
In addition to the current embargo, the Club is already subject to a fee restriction for the next three transfer windows after it accumulated 30 days or more of late payments in the current 12-month period (1 July 2023 to 30 June 2024). The current default period as of 31 October 2023 was 79 days.
Where a Club continues to fail to make the payment as in the case of Reading, EFL Regulations agreed by EFL Clubs provide for a Club to be referred to a commission independent of the EFL who shall determine an appropriate further sanction.
Reading Football Club has been referred to an Independent disciplinary commission (IDC) for continued non-payment of monies owed to HMRC.
The Club has defaulted in relation to the amount owed to HMRC for September and October 2023 and as a result is currently under a registration embargo.
In addition to the current embargo, the Club is already subject to a fee restriction for the next three transfer windows after it accumulated 30 days or more of late payments in the current 12-month period (1 July 2023 to 30 June 2024). The current default period as of 31 October 2023 was 79 days.
Where a Club continues to fail to make the payment as in the case of Reading, EFL Regulations agreed by EFL Clubs provide for a Club to be referred to a commission independent of the EFL who shall determine an appropriate further sanction.
strange statement at the end about the owner. I can only imagine its a cut & paste job or a typo as it says that he still hasn't put in 125% of the wage bill into an escrow account and there would be a meeting with him by the end of November.
In September 2023, the Reading FC owner Mr Yongge Dai was charged with misconduct after failing to comply with the order of an independent Disciplinary Commission which required him to deposit an amount equal to 125% of the Club’s forecast monthly wage bill in a designated bank account.
The matter was referred by the League to an independent Disciplinary Commission in accordance with its Regulations and at the hearing, which took place on 23 November 2023, the EFL put forward that Mr Dai should be disqualified from all football activity, including ownership and control, for a period of 12 months.
In its submissions, the EFL also made it clear that it did not feel a sporting sanction against the Club was appropriate in this case as this was direct action being taken against the owner.
On review of all the arguments, the independent Commission were ‘unimpressed’ by Mr Dai’s failure to provide detailed evidence as to the ongoing reasons for failure to pay and as to his future intentions but felt a disqualification would not achieve the immediate objective of sourcing the required funds for the deposit account.
Therefore, the Independent Commission has determined that Mr Dai be fined £20,000 with a further £50,000 suspended and to be activated on 12 January 2024 unless the required deposit is made in full. In addition, Mr Dai is required to maintain the deposit at the levels set out previously until, at the earliest, 31 August 2024.
It is clear that the Commission are critical of his handling of matters labelling it a ‘serious case ‘and ‘deliberate misconduct.’
It is hoped this latest financial sanction, and the threat of further monetary penalties will bring a resolution to the short-term issue of funding the deposit account, which in turn should provide some re-assurance to the management, staff, and players at the Club, who continue to act as outstanding ambassadors for Reading FC, despite the challenging circumstances.
The League will have no hesitation in bringing further charges against Mr Dai if he fails to comply with the Commission’s directive and is also ready to support the Club in quickly progressing a change of control at the Club once a purchaser has been identified.
The independent Disciplinary Commission’s Written Reasons can be viewed here.
While I understand them not wanting to put a points deduction on them, the fact that the funds have not been deposited should at least result in an embargo. I don’t see how they can let them sign players if there’s no proof the club is funded fully.
Comments
EFL Statement: Reading FC
Reading FC have been deducted three points from the 2023/24 League One table after the Club failed to comply with the order of an Independent Disciplinary Commission (IDC) which required them to deposit an amount equal to 125% of the Club’s forecast monthly wage bill in a designated account by 12 September 2023.On 15 August 2023, the IDC had determined the Club had breached EFL Regulations related to the Club having failed to pay its players’ wages on time and in full on or around 31 October 2022, 30 November 2022, and 28 April 2023. The Club received a one-point deduction, with a further three points suspended.
As a result of this latest instance of non-compliance by the Club’s ownership, the suspended sanction has been activated and, as per the Commission's instructions, applied by the EFL to the League One table with immediate effect.
The EFL continues to acknowledge the negative impact sporting sanctions are having on the Football Club and remain extremely disappointed and frustrated at the Club’s ownership to meet its ongoing obligations under EFL Regulations. The League will continue to apply its rules in all circumstances deemed appropriate.
The Independent Disciplinary Commission’s Written Reasons can be viewed here.
https://www.efl.com/news/2023/september/13/efl-statement--reading-fc/
that's at least 4 deductions they've now had with the 2 lots of 6 points last year and earlier this year
can only assume more are likely as they've seemingly not done anything to sort out the issues
Typical! We'd have pissed that league under ESI.
The interesting thing is whether they pay this month's wages on time.
EFL Statement: Mr Yongge Dai
Reading FC’s owner, Mr Yongge Dai, has been charged with misconduct after failing to comply with the order of an independent Disciplinary Commission which required him to deposit an amount equal to 125% of the Club’s forecast monthly wage bill in a designated account by 12 September.
The League considers these further proceedings against him personally are necessary given the repeated failings in meeting the Club’s funding requirements which have only a detrimental impact on the Club and its wider stakeholders.
This matter will now be considered by an independent Disciplinary Commission in accordance with EFL Regulations.
https://www.efl.com/news/2023/september/20/efl-statement--mr-yongge-dai/
EFL Statement: Reading FC
Reading Football Club has been referred to an Independent disciplinary commission (IDC) for continued non-payment of monies owed to HMRC.
The Club has defaulted in relation to the amount owed to HMRC for September and October 2023 and as a result is currently under a registration embargo.
In addition to the current embargo, the Club is already subject to a fee restriction for the next three transfer windows after it accumulated 30 days or more of late payments in the current 12-month period (1 July 2023 to 30 June 2024). The current default period as of 31 October 2023 was 79 days.
Where a Club continues to fail to make the payment as in the case of Reading, EFL Regulations agreed by EFL Clubs provide for a Club to be referred to a commission independent of the EFL who shall determine an appropriate further sanction.
https://www.efl.com/news/2023/november/01/efl-statement-reading-fc/
https://www.readingchronicle.co.uk/sport/23957315.reading-fc-embargo-tax-remains-outstanding/
https://www.efl.com/governance/embargoes
Well, thats today then.
@oohaahmortimer would be delighted.
https://www.readingchronicle.co.uk/sport/23970949.reading-fc-removed-efl-embargo-settling-hmrc/
EFL Statement: Mr Yongge Dai
In September 2023, the Reading FC owner Mr Yongge Dai was charged with misconduct after failing to comply with the order of an independent Disciplinary Commission which required him to deposit an amount equal to 125% of the Club’s forecast monthly wage bill in a designated bank account.
The matter was referred by the League to an independent Disciplinary Commission in accordance with its Regulations and at the hearing, which took place on 23 November 2023, the EFL put forward that Mr Dai should be disqualified from all football activity, including ownership and control, for a period of 12 months.
In its submissions, the EFL also made it clear that it did not feel a sporting sanction against the Club was appropriate in this case as this was direct action being taken against the owner.
On review of all the arguments, the independent Commission were ‘unimpressed’ by Mr Dai’s failure to provide detailed evidence as to the ongoing reasons for failure to pay and as to his future intentions but felt a disqualification would not achieve the immediate objective of sourcing the required funds for the deposit account.
Therefore, the Independent Commission has determined that Mr Dai be fined £20,000 with a further £50,000 suspended and to be activated on 12 January 2024 unless the required deposit is made in full. In addition, Mr Dai is required to maintain the deposit at the levels set out previously until, at the earliest, 31 August 2024.
It is clear that the Commission are critical of his handling of matters labelling it a ‘serious case ‘and ‘deliberate misconduct.’
It is hoped this latest financial sanction, and the threat of further monetary penalties will bring a resolution to the short-term issue of funding the deposit account, which in turn should provide some re-assurance to the management, staff, and players at the Club, who continue to act as outstanding ambassadors for Reading FC, despite the challenging circumstances.
The League will have no hesitation in bringing further charges against Mr Dai if he fails to comply with the Commission’s directive and is also ready to support the Club in quickly progressing a change of control at the Club once a purchaser has been identified.
The independent Disciplinary Commission’s Written Reasons can be viewed here.
https://www.efl.com/news/2023/december/19/efl-statement--mr-yongge-dai/