Reading Football Club is bracing for a new transfer embargo as the club addresses concerns regarding potential disqualification by the English Football League (EFL).
The club has released a statement regarding the current critical situation, which involves the EFL`s decision to disqualify owner Dai Yongge due to debts in China.
Yongge did not pass the owners and directors test and is required to sell the club to prevent Reading`s disqualification from the EFL.
The sale of The Royals is in progress as part of a takeover bid.
An exclusivity agreement is currently in place for a prospective owner to purchase the club, stadium, and training facilities.
However, ongoing legal proceedings with Rob Couhig are causing delays in the sale process.
Couhig, former owner of Wycombe Wanderers, had previously agreed to a £30 million deal to acquire Reading.
This deal later fell apart, with Couhig claiming significant losses due to Reading breaching their exclusivity agreement.
Reading’s statement provided the following update: “The exclusivity period with the proposed buyer remains active, with the sale encompassing the club, Select Car Leasing Stadium, and Bearwood Park Training Facility.
“All involved parties are optimistic about finalizing the transaction as soon as possible.”
“Regarding the ongoing litigation with Mr Couhig and the Commercial Court hearing last Friday, the club confirms that a formal proposal for alternative security has been presented to Mr Couhig through his legal representatives.”
“It is hoped that this proposal will be quickly accepted to resolve the current security deadlock and facilitate the sale.”
“The club also wishes to clarify the current situation with the EFL and Mr. Dai`s disqualification as a Director.
“According to the disqualification terms, Mr. Dai must now relinquish his interests in Reading Football Club and is committed to fulfilling this requirement.”
Reading also confirmed that a previous transfer embargo had been lifted following the submission of their 2022/23 financial accounts to Companies House.
However, the club faces another transfer embargo if they fail to submit their accounts for the 2023/24 season before the EFL`s deadline on March 31st, a requirement the club acknowledges is “highly unlikely” to be met.
