Sorry situation for Portsmouth’s League One rivals as club smacked with transfer embargo

The League One season keeps on going from bad to worse for Portsmouth's southern rivals Reading.

The recently relegated club sit 22nd in the league with just five points on the board after three wins this season following financial woes at the Select Car Leasing Stadium.

Despite the warnings and points deductions, Reading have now been hit with a transfer embargo after failing to pay HMRC on time with the dark days far from a resolution in Berkshire.

The Royals were relegated from the Championship last term with 44 points following a six-point deduction for failing to adhere to the terms of an agreed business plan after a previous profit and sustainability rule breach. If it wasn't for that docking of points, the side would have maintained its place in the second tier rather than a first drop to League One since 2001/02.

Since the start of the League One campaign, the club was docked one point on August 16 for failing to pay players on time with a further three points suspended. Those additional three points were then triggered earlier this month after club owner Dai Yongge failed to deposit 125% of the club’s monthly wage bill into a designated account, which had been ordered in their previous hearing.

The Telegraph reports that the latest transfer punishment could also turn into a points deduction if the club fails to pay staff and player wages on Friday, September 29. The outlet does add hope for Royals fans with one party said to be in 'advanced negotiations' over a takeover but concerns are held over the impact of recent controversies.

Off-the-pitch dramas have filtered down to impact Ruben Selles' side's performance on the turf with five of the side's eight opening League One matches ending in defeat. There have been moments of promise from the side with a 4-0 win over Millwall and a 9-0 win over Exeter City coming in cup fixtures.

Portsmouth are yet to face Reading this season but will travel to the Select Car Leasing Stadium on Saturday, October 28 before welcoming the strugglers to Fratton Park on Saturday, February 17.