CONFIMRED - The final countdown

[PieEater]

I'm also not clear on Couhigs claim, he got his loans paid back, but he lost some money on legal fees. His legal bill can't be more than £1m, so what is the other claim.

As I recall from the commentary posted the £6m offer for escrow came from the club and the judge agreed. What does the club think he could have profited £6m from? If his claim was completely spurious they'd of offered a much lower value in escrow.

[Sutekh]

So at some unspecified recent date, the EFL disqualified Yongge. Why exactly was this kept a secret?

Apparently the letter from the EFL was dated 22nd February. So initially he was supposed to be disqualified around about now. But he got an extension on the original 28 day deadline to the 4th April. So the club/EFL have been sitting on this news for about a month already.

Further to this the club announced exclusivity with Platek 2 days later, on the 24th February, and the disqualification date was subsequently extended

So would that announcement have been made without the disqualification letter? Was it just a ploy to buy more time? Have they overstated the progress when briefing the press?

Don’t care now we’re at the death throes! What’s another 4-6 weeks after almost 8 years? Not going to help his negotiating position though, with everyone knowing he’s effectively got to sell by May 3.

[Sutekh]

I'm also not clear on Couhigs claim, he got his loans paid back, but he lost some money on legal fees. His legal bill can't be more than £1m, so what is the other claim.

As I recall from the commentary posted the £6m offer for escrow came from the club and the judge agreed. What does the club think he could have profited £6m from? If his claim was completely spurious they'd of offered a much lower value in escrow.

RC is claiming £9.5m in lost profits and £800k in legal costs.

[PieEater]

Coutig has charges over physical assets. The assets cannot be transfered to a new owner without the charges being removed. Money being deposited into escrow parks this legal dispute. With the next hearing not scheduled until June.

I'm going to go off what Couhig's lawyers said in court if that's okay. They clearly said it doesn't block a sale; they just don't want the funds to disappear to China.

Yes didn’t the judge say he saw no reason why a sale couldn’t be completed with things as they currently are?

Couhigs charges over Bearwood were released when the loans he made were repaid. That enabled a sale.

[WestYorksRoyal]

With the failure to release FM25 this year, FM24 may be the final version with Reading in the start game. Scary thought.

[Royal_jimmy]

Surely though Dai owes a lot of money in China and his business is crocked. The best thing for him is to take the £20-30m and sort his own mess out.

This whole behaviour sums up his attitude to owning the club. I mean by the way we've handled player contracts, rather than sell good players Dai has rejected bids and we ended up losing some good players for nothing or almost nothing. We just have to cope the club isn't the next thing!

[Snowflake Royal]

The claim doesn’t block a sale, it can be resolved with a mere guarantee the potential award won’t vanish with our owner the minute the scumbag sells to someone else. And there is no impending sale being stalled by the claim. That was exposed as bloody fantasy.

Coutig has charges over physical assets. The assets cannot be transfered to a new owner without the charges being removed. Money being deposited into escrow parks this legal dispute. With the next hearing not scheduled until June.

I'm going to go off what Couhig's lawyers said in court if that's okay. They clearly said it doesn't block a sale; they just don't want the funds to disappear to China.

As did the judge reportedly.

[WestYorksRoyal]

Surely though Dai owes a lot of money in China and his business is crocked. The best thing for him is to take the £20-30m and sort his own mess out.

This whole behaviour sums up his attitude to owning the club. I mean by the way we've handled player contracts, rather than sell good players Dai has rejected bids and we ended up losing some good players for nothing or almost nothing. We just have to cope the club isn't the next thing!

The problem is he can't take £25m odd straight away. He'd need to put £12m of it in escrow for the Couhig case in June.

[Snowflake Royal]

So at some unspecified recent date, the EFL disqualified Yongge. Why exactly was this kept a secret?

Apparently the letter from the EFL was dated 22nd February. So initially he was supposed to be disqualified around about now. But he got an extension on the original 28 day deadline to the 4th April. So the club/EFL have been sitting on this news for about a month already.

Further to this the club announced exclusivity with Platek 2 days later, on the 24th February, and the disqualification date was subsequently extended

So would that announcement have been made without the disqualification letter? Was it just a ploy to buy more time? Have they overstated the progress when briefing the press?

It seemed like a ploy to appease fans and string things along at the time, let alone in light of that revelation.

[windermereROYAL]

Seeing varying reports that the 28 day deadline has already started. they`re not chucking us out before the season finishes anyway with all the implications that would bring.

[tmesis]

Seeing varying reports that the 28 day deadline has already started. they`re not chucking us out before the season finishes anyway with all the implications that would bring.

I'm not sure if any club has been kicked out during a season. A few either went bust or resigned mid-season, such as Accrington Stanley, Aldershot and Newport, but others were kicked out during the close season.

A check shows that Leeds City were expelled early into the 1919/20 season.

I suspect the EFL see no issue in letting us complete the season, but wouldn't want the risk of having to start league 1 with 23 teams in 25/26.

[Sutekh]

Seeing varying reports that the 28 day deadline has already started. they`re not chucking us out before the season finishes anyway with all the implications that would bring.

I'm not sure if any club has been kicked out during a season. A few either went bust or resigned mid-season, such as Accrington Stanley, Aldershot and Newport, but others were kicked out during the close season.

A check shows that Leeds City were expelled early into the 1919/20 season.

I suspect the EFL see no issue in letting us complete the season, but wouldn't want the risk of having to start league 1 with 23 teams in 25/26.

Clubs go to the wall at all stages of a season. Their records are expunged and the division limps along one club down.

Bury were thrown out of the FL after 5 games of the 2019/20 season though all their games had been postponed
Aldershot went out of business in 1992, their record was expunged after 36 games
Before a ball was kicked in the 92/93 season Maidstone collapsed after a plan to save the club by moving it to Tyneside and merging with Newcastle Blue Star was rejected by the FL. Reading got a bye to the 2nd Round of the League Cup as a result.
Leeds City were expelled from the FL after they'd played 8 games in 1919/20, however they were replaced by Port Vale who just picked up Leeds' playing record and continued where Leeds City left off.
Accrington Stanley resigned from the FL in March 1962, again their record was expunged

[RoyalBlue]

So at some unspecified recent date, the EFL disqualified Yongge. Why exactly was this kept a secret?

Apparently the letter from the EFL was dated 22nd February. So initially he was supposed to be disqualified around about now. But he got an extension on the original 28 day deadline to the 4th April. So the club/EFL have been sitting on this news for about a month already.

I think that's fair enough. The EFL are trying to put pressure on Dai to sell up or risk losing everything, but at the moment it's a matter for Dai and the club. Had the EFL made it public, that would have given Platek (or any other bidders) an immediate reason to drop their offer, knowing Dai is backed into a corner. That hardly helps progress the sale, which is the outcome the EFL ultimately want, so it was right for them to keep it confidential.

The club/Dai would have been obliged to notify Platek re the disqualification as part of the due diligence process, since it potentially has such an enormous effect on the club's future and value. Had they/Dai not disclosed that, he would have have left himself open to landing in even deeper legal shit than he is already.

[Reading4eva]

Might be an unpopular take but Bearwood especially is a problem in its current form. Now I'm not suggesting getting rid of it entirely as that would be counter productive but doing something about it needs to be done.

Be that shrinking the massive number of pitches in place at the moment or sharing it with other sports groups until a time comes when the club is at a level they can sustain it properly financially.

[Royals and Racers]

Might be an unpopular take but Bearwood especially is a problem in its current form. Now I'm not suggesting getting rid of it entirely as that would be counter productive but doing something about it needs to be done.

Be that shrinking the massive number of pitches in place at the moment or sharing it with other sports groups until a time comes when the club is at a level they can sustain it properly financially.

Any Cat 1 , 2 or 3 Academy will need the same facilities as at Bearwood - it’s just that Cat 1 needs so many more staff for all the extra stuff that’s required over Cat 2 and 3.

[JR]

Some comments on hear on the lost profits claim and being outrageous as well as the £12/£6m escrow.

If we assume Couhig believes he has valid evidence of a breach of exclusivity, then I would hope we would all agree that a loss of profits claim his reasonable, as a breach of contract by the seller prevented him from owning the club and he wouldn’t be buying it if he didn’t think he could make a profit from it.

It therefore comes down to a forecasting exercise on future profits. £12m does sound very optimistic, but I’m sure they’ll have projections to support that and it will come down to a debate on what reasonable projections are (if the court finds there was a breach).

On the £6m escrow point - that wasn’t the club saying they agree to £6m of loss profits, more a negotiation tactic to reduce the potential downside for Dai and get more of the sale proceeds to him straight away.

[tmesis]

Seeing varying reports that the 28 day deadline has already started. they`re not chucking us out before the season finishes anyway with all the implications that would bring.

I'm not sure if any club has been kicked out during a season. A few either went bust or resigned mid-season, such as Accrington Stanley, Aldershot and Newport, but others were kicked out during the close season.

A check shows that Leeds City were expelled early into the 1919/20 season.

I suspect the EFL see no issue in letting us complete the season, but wouldn't want the risk of having to start league 1 with 23 teams in 25/26.

Clubs go to the wall at all stages of a season. Their records are expunged and the division limps along one club down.

Bury were thrown out of the FL after 5 games of the 2019/20 season though all their games had been postponed
Aldershot went out of business in 1992, their record was expunged after 36 games
Before a ball was kicked in the 92/93 season Maidstone collapsed after a plan to save the club by moving it to Tyneside and merging with Newcastle Blue Star was rejected by the FL. Reading got a bye to the 2nd Round of the League Cup as a result.
Leeds City were expelled from the FL after they'd played 8 games in 1919/20, however they were replaced by Port Vale who just picked up Leeds' playing record and continued where Leeds City left off.
Accrington Stanley resigned from the FL in March 1962, again their record was expunged

A club folding or resigning isn't the same as being 'kicked out' though.

Our position is ususual in that if we were allowed to continue, unlike Bury and Maidstone, we would be almost certain to be able to carry on and fulfill our fixtures, at least for a good chunk of the season. I believe those two had no players and quite obviously were in no state to continue.

The EFL don't seem keen on taking that risk though, and also if banning an owner is to have any impact at all, they can't allow a club to continue playing in their competition.

It does also beg the question of what would happen if the club were kicked out, and Dai doesn't liquidate. The expulsion and disqualification relates to the EFL only, and if it takes places before promotion and relegation issues in the pyramid have been settled, then club ceasing to exist, or having to start again at the bottom of the pyramid, is not certain. It could, in theory, just mean us being dumped into the National League.

In some ways that would almost be worse, as we'd be unable to be promoted with Dai in charge.

[windermereROYAL]

Makes you wonder if the players will bother turning up next week.

[Extended-Phenotype]

Some comments on hear on the lost profits claim and being outrageous as well as the £12/£6m escrow.

If we assume Couhig believes he has valid evidence of a breach of exclusivity, then I would hope we would all agree that a loss of profits claim his reasonable, as a breach of contract by the seller prevented him from owning the club and he wouldn’t be buying it if he didn’t think he could make a profit from it.

It therefore comes down to a forecasting exercise on future profits. £12m does sound very optimistic, but I’m sure they’ll have projections to support that and it will come down to a debate on what reasonable projections are (if the court finds there was a breach).

On the £6m escrow point - that wasn’t the club saying they agree to £6m of loss profits, more a negotiation tactic to reduce the potential downside for Dai and get more of the sale proceeds to him straight away.

Yeah, this is the whole point. Sticking money in escrow isn’t the same as losing it or admitting fault. It’s just saying that IF a judge finds in favour of Couhig’s claim, the money is there to cover it rather than “locked up in China” as Dai has been fond of insisting when bills need to be paid.

I have no idea why Couhig is a villain for this. He’s dealing with a crook. He wants compensation for foul play and he wants the potential funds secured. AND his persistence, stubbornness and refusal to let Dai piss people around might just be the thing that saves Reading from this scumbag.

If Couhig ends up our owner, I’ll be welcoming him and breathing a sigh of relief that our nightmare is finally over. If this other supposed deal turns out to be more than the bullshit it appears to be, then I will also welcome Platek. But I don’t feel any need to bear a grudge against Couhig. He might very well have done us a favour.

[rabidbee]

I did think initially that Couhig’s intention wasn’t to extract damages from Dai, but to try to leverage him back to table to force a sale. Maybe it was, but circumstances have shown that Dai is willing to carry on limping along waiting for an unrealistic offer to turn up.