The details of Rob Couhig’s claim against Dai Yongge, Renhe Sports Management and Reading Football Club have been revealed in documents published by the Courts and Tribunals Service.
The former Wycombe Wanderers manager has filed a claim for more than £12 million against Renhe Sports Management, the holding company through which Yongge controls the club, alleging a breach of an exclusivity agreement and a loss of potential earnings.
While a group entitled Chiron initially came into a takeover deal with the club in March, this was transferred to Redwood Holdings in April.
Signing exclusivity renewals in May, July, and August resulted in a loan of around £4,655,000 to keep the club afloat while the purchase process was completed.
Mr Couhig’s loans were returned in September, and the club stated that conversations with other interested investors were underway, effectively ending Mr Couhig’s interest.
However, Redwood and Mr Couhig believe that “in early May 2024 or thereabouts, Renhe or persons acting on a document entitled ‘Reading FC-Investment Opportunity Incredible immediate opportunity to acquire the club for a fraction of its worth’.” The paper requested a “Submission of Letter of Intent and Proof of Funds (£45 million) to the club by 22 May 2024.”
This was a breach of the exclusivity agreement, and the document, seen by the Reading Chronicle, states: “Renhe’s breach of the Exclusivity Provisions in the [Letter of Intent] has cost Redwood the opportunity to acquire Renhe’s shares in Reading FC.” According to Redwood, the chances of purchasing Reading FC shares from Renhe (barring Renhe’s breach of contract) were at least 50 percent. Redwood reserves the right to argue at trial that the lost chance was much greater than 50%. If it is determined at trial that Redwood’s chances of purchasing Reading FC shares from Renhe were more or less than 50%, Redwood will seek damages proportionately.”
In addition to the loss of £12,000,000 in potential revenues, fees of more than £300,000 are being claimed.
This is for:
£288,092.14 + VAT for legal fees.
£908 legal fees in the British Virgin Islands
£4,124.50 for flights and accommodations for Due Diligence in May.
£5,627.81 on airfare and lodging for Due Diligence in September.
A court date has yet to be set, but Redwood Holdings is seeking a total of £12,298,752.45.
Interest on top of this includes a daily rate of £2,611.38 per day, which is already at £80,952.75.
The skilled lawyer has declared publicly in recent weeks that he wants to execute the previously agreed-upon transaction with the club.
Little is known about the party still in talks to buy the club.
Reading Football Club and Mr. Couhig were contacted for comment.
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