EFL club risk ‘immediate’ expulsion from league if controversial owner can’t sell club within 28 days
Reading face the prospect being thrown out of the Football League unless the club is sold imminently. The EFL submitted a letter to a London court stating they plan to disqualify current owner Dai Yongge from being a director on April 4 due to overseas debt. GettyReading are at serious risk of being booted out of the EFL as a result[/caption] Under EFL rules the controversial Chinese businessman would have 28 days from disqualification to sell his shares at which point Reading could be expelled from the league. The bombshell came to light during a hearing at London Commercial Court into a dispute between Yongge and Rob Couhig over the potential purchase of the Royals last year. The EFL have since confirmed Yongge has been disqualified and would ‘consider all options’ in their bid to reach a resolution for all parties. “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 statement read. “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. “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.” Yongge previously agreed to a £30million deal to sell the Royals to Couhig, an American lawyer, but the deal ultimately collapsed. Reading also entered a period of exclusivity with an interested party ahead of a mooted takeover in February. However, that failed to materialise after the period of exclusivity expired. This came after failed bids from former Wycombe Wanderers owner Rob Couhig and ex-Royals chairman Roger Smee in 2024. Reading fans have made their feelings clear regarding current owner Dai YonggeGetty Yongge purchased an initial 75 per cent share in Reading in 2017 before he took full ownership. However, Yongge’s ownership in recent years has been dogged by off-field difficulties. The Royals have been hit with several points deductions and transfer embargoes due to falling foul of the EFL’s Financial Fair Play rules as well as unpaid taxes. As a result of the constant points deductions, Reading were relegated from the Championship at the end of the 2022/23 season. Reading were also docked a total of six points last term in League One as they recorded a 17th-place finish. Royals supporters have made no secret of their frustration with Yongge, with fan-led pressure group Sell Before We Dai the most vocal amongst the supporter base. Reading fans stormed the pitch at their Madejski Stadium last year@JacobsBen X In January 2024, the fans’ frustration spilled onto the pitch during Reading’s match against Port Vale. A protest was initially planned for the end of the match, but fans could no longer hide their frustrations from the start. Chants of ‘Get out of our club’ and ‘we want Dai Yongge out’ were followed by hundreds of tennis balls being thrown onto the pitch at Reading’s home ground. Reading released a message on social media where they reminded fans ‘that entering or throwing items onto the pitch can pit the fixture at risk of abandonment’. Despite the threats from the club, it didn’t stop frustrated fans from storming onto the pitch with banners and flares after 16 minutes The on-field protest ultimately led to the clash being abandoned. Reading sit eighth in League One on 59 points, two off sixth-placed Huddersfield Town who occupy the last play-off spot.
Reading face the prospect being thrown out of the Football League unless the club is sold imminently.
The EFL submitted a letter to a London court stating they plan to disqualify current owner Dai Yongge from being a director on April 4 due to overseas debt.
Under EFL rules the controversial Chinese businessman would have 28 days from disqualification to sell his shares at which point Reading could be expelled from the league.
The bombshell came to light during a hearing at London Commercial Court into a dispute between Yongge and Rob Couhig over the potential purchase of the Royals last year.
The EFL have since confirmed Yongge has been disqualified and would ‘consider all options’ in their bid to reach a resolution for all parties.
“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 statement read.
“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.
“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.”
Yongge previously agreed to a £30million deal to sell the Royals to Couhig, an American lawyer, but the deal ultimately collapsed.
Reading also entered a period of exclusivity with an interested party ahead of a mooted takeover in February.
However, that failed to materialise after the period of exclusivity expired.
This came after failed bids from former Wycombe Wanderers owner Rob Couhig and ex-Royals chairman Roger Smee in 2024.
Yongge purchased an initial 75 per cent share in Reading in 2017 before he took full ownership.
However, Yongge’s ownership in recent years has been dogged by off-field difficulties.
The Royals have been hit with several points deductions and transfer embargoes due to falling foul of the EFL’s Financial Fair Play rules as well as unpaid taxes.
As a result of the constant points deductions, Reading were relegated from the Championship at the end of the 2022/23 season.
Reading were also docked a total of six points last term in League One as they recorded a 17th-place finish.
Royals supporters have made no secret of their frustration with Yongge, with fan-led pressure group Sell Before We Dai the most vocal amongst the supporter base.
In January 2024, the fans’ frustration spilled onto the pitch during Reading’s match against Port Vale.
A protest was initially planned for the end of the match, but fans could no longer hide their frustrations from the start.
Chants of ‘Get out of our club’ and ‘we want Dai Yongge out’ were followed by hundreds of tennis balls being thrown onto the pitch at Reading’s home ground.
Reading released a message on social media where they reminded fans ‘that entering or throwing items onto the pitch can pit the fixture at risk of abandonment’.
Despite the threats from the club, it didn’t stop frustrated fans from storming onto the pitch with banners and flares after 16 minutes
The on-field protest ultimately led to the clash being abandoned.
Reading sit eighth in League One on 59 points, two off sixth-placed Huddersfield Town who occupy the last play-off spot.
