Despite misgivings, Reading FC’s promising takeover news is announced.
League One side. Reading has had a lengthy selling process since current owner Dai Yongge put the club on the market last year.
According to The Guardian, Dai’s refusal to repay loans to a state-backed Chinese bank has been a major reason for his club’s struggles to sell.
According to the same publication, Rob Couhig’s attempts to acquire control of the club were unsuccessful due to a payback issue.
Haitong International Securities, the investment bank Dai owes money to, halted a sale last month by seeking a stop notice in the British Virgin Islands, where the club’s stadium is likely registered for tax purposes.
The bank may acquire possession of the Select Car Leasing Stadium if Dai fails to settle the debt.
Yesterday, Reading Chronicle journalist James Earnshaw revealed that possible purchasers of the third-tier club are aware of the situation, easing fears among Royals fans.
This problem is not expected to hinder the sale process, and current owner Dai can still sell the Berkshire side.
This is good news for Royals fans, who will want to see a change of ownership as soon as possible.
Funding appears to be in place until a sale is finalized, but this lengthy drama must come to a stop after a significant amount of off-field turmoil over the last year or so.
The club has also had 18 points removed over the last three years, with all of them occurring under Dai’s reign.
Overspending was traditionally the issue that got the club in trouble with the authorities, but cash flow concerns have become more of a problem in recent years, with late salary payments and HMRC resulting in a handful of point penalties.
| Reading FC’s points deductions under Dai Yongge | |
|---|---|
| Season | Number of points deducted |
| 2021/22 | 6 |
| 2022/23 | 6 |
| 2023/24 | 6 |
| (Correct as of October 11th, 2024) | |
Earnshaw believes current and prior purchasers are aware of the issue, and it was not the reason for the deal’s failure.
Additionally, the present selling process is expected to move forward, and the issue is unlikely to prevent a takeover.
That is the most crucial issue for Royals supporters, who were concerned that the transaction would be hard to execute.
In contrast to the Guardian piece, Earnshaw believes the EFL is aware of the prospective bidders’ identities.
Benny Kwong, a Hong Kong businessman who was previously linked to the Berkshire side, is not believed to be engaged in the exclusive party.
Reading FC supporters require a sale as much as any other shareholder.
Fans will likely settle during the Royals’ future matches against Crawley Town and Exeter City, since sales might take time.
However, if supporters are to remain calm, this process must go rapidly, as a takeover is required as soon as possible.
The players and the manager need certainty, as do the supporters, the majority of whom have been with Dai throughout his rule.
It would also be useful to know the bidders’ identities and their prospects of passing the Owners and Directors’ Test (OaDT).
If this party fails to pass those requirements, another party must step in. Fans will hope that the current possible purchasers are the appropriate fit for the team.
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