Reading are DEDUCTED six points for the second year in a row after breaching the EFL's financial rules... leaving Paul Ince's side just ONE point above the Championship relegation zone

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Reading have been hit with an immediate six-point penalty after breaching the EFL's Profit and Sustainability limits.

Sportsmail exclusively revealed last month the Royals were set to be docked points for a second successive campaign, and the punishment has now been handed down to the club.

Paul Ince's side had sat seven points clear of the bottom three prior to the deduction, but are now just a single point above 22nd-placed Huddersfield.

In a statement released on Tuesday, the club said: 'Reading Football Club can confirm that we have accepted a second six-point penalty which has been applied following the club’s failure to fully satisfy a business plan agreed after a historical breach of the EFL’s Profit and Sustainability limits.

'The points deduction will be applied to our total with immediate effect.

Reading have been deducted six points for the second consecutive season

Paul Ince's side are now just a point above the Championship relegation zone after the penalty

'In November 2021, the club were issued with a six-point deduction for a cumulative breach of the regulations - with a further six-point penalty suspended until 2022-23.

At the time of the original breach, it was agreed with the League this further six-point penalty was due to be applied if the club could not meet the demands of an agreed business plan for 2022-23. 

'And, despite radical changes implemented at first team level and right across the structure of the business to its very core - and a rigid adherence to a strict league-monitored wage structure and transfer embargo, the club accepts that it has not sufficiently satisfied certain elements of the planned budget and that, as a result, the independent Club Financial Review Panel has been unable to ratify that the club has met its forecast for compliance.'

The independent Club Financial Review Unit also released a statement confirming the news.

'This is the first time a Club in the EFL has been subject to a review by the newly formed independent Club Financial Review Panel (CFRP), chaired by Christopher Quinlan KC, which considers matters put forward by the EFL’s independent Club Financial Reporting Unit (CFRU),' they said.

'The Club has admitted to the two breaches of the original agreement with the EFL and has agreed to this six-point points deduction by way of an Agreed Decision with the CFRU. The Panel has ratified that decision.

'In addition, the Club will be required to agree a new budget with the independent Club Financial Reporting Unit for the 2023/24 season aimed at ensuring future compliance with the regulations. This will be finalised once the Club’s full P&S Review has been completed for the current season.'

Reading return to action on Friday when they host Birmingham City, and now have seven games to stay above the bottom three to remain in England's second tier next season.