Reading lost more than £20m and spent more on wages than they made in income in the season they were relegated to League One, according to financial accounts submitted 12 months late.
The Royals were a year late in publishing accounts for the 2022-23 campaign, in which they were relegated from the Championship, and had been placed under the latest of several transfer embargoes by the English Football League for the past six months as punishment.
That ban has now been lifted, but could be reinstated if Reading fail to publish their 2023-24 accounts by 31 March.
The 2022-23 accounts, external showed the club had suffered pre-tax losses of £21.7m in the year to June 2023, up from £17m the previous financial year despite revenue increasing.
The belated release of Reading’s financial reports comes with the club’s future still in limbo, after owner Dai Yongge was given a deadline of 4 April to sell the Royals having been disqualified under the EFL’s Owners’ and Directors’ Test.
Salary expenditure fell slightly but was still £24.5m, outstripping the club’s income despite Reading dropping down to League One that season.
The club’s relegation to the third tier of English football was thanks in part to being docked six points for breaching profit and sustainability rules.
They finished 17th in League One last season despite enduring several more points deductions, but are currently eighth in the division – two points off a play-off place – following a 10-game unbeaten run.
Multiple attempted takeovers have fallen through since Yongge committed to a letter of intent to sell the club in March 2024, with fans regularly staging matchday protests.
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