Peterborough explore legal avenues with Reading set to be hit with a six-point penalty

Peterborough are exploring legal avenues after Sportsmail revealed that Reading will receive a six point penalty.

Posh were relegated from the Championship last season, having finished four points behind the Royals.

Reading initially received a six point penalty which was enforced in that campaign for excessive spending, with six points suspended pending their compliance with an EFL business plan.

However, Sportsmail revealed that Paul Ince’s team are believed to have breached that plan and now face the activation of the six-point suspension.

That would drop them from 14 to 19 and leave them seven points out of the relegation zone with 13 games remaining. Four of the top five await in their next four meetings.

Peterborough are exploring legal avenues after it was announced that Reading could face a six point penalty.

The deduction, suspended since last season, will be a blow to Reading manager Paul Ince.

Posh, currently eight points out of the play-offs in League One, declined to comment but is believed to be monitoring the situation closely.

It is estimated that relegation cost them over £10 million in lost revenue and a drop in player ratings. It is unclear if they would have a case, given that they adhered to EFL rules.

However, Derby reached an agreement with Wycombe after the Buckinghamshire club were relegated in 2021 before the Rams were hit with a nine-point deduction for historic breaches of financial rules.

A settlement was also reached with Middlesbrough, who argued that Derby’s breach of financial rules prevented them from reaching the 2018–19 play-offs.

Peterborough will look at whether they can have a case to claim compensation, given that the original penalty was imposed last season.

Peterborough’s relegation to League One is believed to have cost around £10 million in revenue, as well as a drop in player ratings.

A deduction would send the Royals from a comfortable mid-table position in the Championship towards the relegation places.

Reading will drop from 14th place in the Championship when points deduction comes into effect

Ince confirmed the penalty was due at a news conference before Reading’s game at Middlesbrough on Saturday.

“It was leaked in the Daily Mail yesterday and I had just come off training ground,” he said. “I knew there was going to be a situation, with the last two years, where there were six points suspended.”

The breach is believed to be related to expenses, rather than revenue. Ince, who signed his son Tom to a three-year deal in June, added: “I think (the punishment) could be next week, but we’re not sure.” We want to know.

“If we are going to get it, give it to us and if not, let us continue with the rest of the season. If we get it, it will be next week.