Mon Mar 07, 2022 7:36 pm
Reading FC potential legal battle on horizon if Barnsley relegated
07/03/2022
BY JAMES EARNSHAW
@james_e1871
The Championship relegation battle takes another twist as Barnsley could threaten legal action for 'cheating', according to the Athletic.
Matt Slater explained that Barnsley chief executive, Khaled El-Ahmad, sent a letter to the EFL last week asking for “more clarity around (Reading’s) compliance” with the business plan agreed in November.
Reading lost almost £58m between 2017 and 2021, nearly £20m more than permitted in the EFL’s Profit and Sustainability regulations.
Last season's accounts have recently been released, with the club posting losses of nearly £36m.
The club accepted a six-point penalty for this season, with another six next season if the club fail to stick to the business plan.
According to the online outlet, the letter states: “We believe Reading are at a sporting advantage in the 2021-22 season, by continuing to operate a business model that is incompatible with P&S compliance.
“Barnsley are at a competitive disadvantage now. We therefore find it objectionable that a breach that is occurring now would not be sanctioned until 2022-23.
“We are keen to avoid a similar situation to that which Wycombe Wanderers find themselves in, whereby we are forced to take legal action if sanctions are applied in a non-coterminous period when the continuous and sustained breach of regulations occurred.”
This is not an uncommon set of affairs, with both Wycombe Wanderers and Middlesbrough taking Derby County through the courts due to their financial mismanagement which has lead to the club being docked a total of 21 points this season.
Middlesbrough owner Steve Gibson claims that the Teesiders were unfortunate to miss out on reaching the play-offs in 2018/19, while Frank Lampard’s Derby reached the final, and the Chairboys were relegated just one point behind the Rams last season.
Mon Mar 07, 2022 7:50 pm
The Derby situation has set a precedent now, this will become the norm!