Reading FC‘s future takes another dramatic turn as club owner Dai Yongge has been disqualified under the English Football League’s (EFL) Owners’ and Directors’ Test.
The EFL confirmed the disqualification late last week, stating that Yongge now faces a deadline of 4 April to sell the club. Failure to do so within this timeframe could lead to further regulatory action by the league.
In its official statement, the EFL said: “Following its disclosure in open court earlier today, the league can confirm that Mr Yongge has been recently disqualified under the EFL’s Owners’ and Directors’ Test.
“The disqualification requires Mr Yongge to divest his interests in the club, and in the event that he fails to do so within the agreed timeframe, the league will consider all options available within its regulations to bring the matter to a conclusion.”
Reading currently sits in 8th position in League One and is riding a 10-game unbeaten run. However, the club’s promising season could come to an abrupt halt if Yongge does not sell before the deadline.
The EFL added: “The league continues to work closely with Reading FC to progress a sale of the club at the earliest opportunity, in order to end the current uncertainty surrounding its future for its staff, supporters and wider community.”
The club has been up for sale for over a year, with Yongge submitting a letter of intent to sell last March. However, the process has been far from smooth.
According to Yongge, the sale is being hindered by former Wycombe owner Rob Couhig, who had previously tried to buy the club. Yongge claims the deal is being blocked due to securities still held by Couhig.
This issue was raised in court last week when Yongge sought an injunction against the former Wycombe owner. However, Judge Justice Jacobs declined to grant the mandatory injunction, which paved the way for the EFL’s announcement.
With the deadline fast approaching, Reading now has little time to act. Following the court’s ruling, the judge set a path for the sale to proceed, indicating that the dispute with Couhig could be resolved separately.
Last week, Reading entered into an exclusivity agreement with a potential buyer, though the identity of the buyer has been kept confidential to ensure the sale can be completed swiftly. The club is hopeful this deal will be finalised, unlike previous offers that have fallen through.
In response to the EFL’s statement, Reading said: “The club acknowledges the Judge’s clear indication that the parties should find a solution to the current impasse regarding the sale of the club by way of its owners providing alternative security or a payment into escrow.
“To allow a sale to proceed, the club looks forward to working with Mr Couhig to resolve this element of his claim.
“Mr Dai remains committed to working with the EFL to sell the club and secure its long-term future.”
This comes amid the UK government’s efforts to improve football governance across football. Last week, the Football Governance Bill, which seeks to independently regulate football in the UK, gained approval by the House of Lords.
