Embargos, HMRC Payment defaults, non payment of wages, the usual under Dai Wrongge

[tmesis]

Even Kieran Maguire said it was a 0.001% chance of ending in liquidation on the basis that we had too much going for us, and he's quite a skeptical person in these matters. But the chance is very real.

People expect clubs to be saved because that's nearly always what happens.

The big question mark for us is Dai, because little of what he does makes sense. The spending in his earlier years was insane, not just in the amounts paid out, but for his continued blind faith in people who seemed to just use him for their own financial gain.

And there's his track record of pulling the plug when he gets bored, as he seems to have become this season.

But then there's the financial and maybe legal issues he's facing back in China. How does that impact things?

As the EFL said, they've not had to deal with the situation of an owner who just doesn't seem to care any more.

I do think there's more chance of us being bought than not, but if there's no news by the end of the month, things get more worrying.

[Wycombe Royal]

It would mean he could sell the real estate assets without having to fund the club in any way.

Who's going to buy a studium and training ground with no sports club to pay rent to use it?

And please don't bring up Bearwood being sold for housing redevelopment. It's part of a historical park so housing will never be allowed.

Neither would have zero value without a club, and developers are happy to play the long game.

I never said it would have zero value. But there is no long game for developers on the training ground. It is historical land, part of the greater Bearwood Park. Go and read the planning application for the training ground. Its all in there.

The stadium area is another matter, but there won't be buyers queuing up for the training ground.

[Mid Sussex Royal]

James Earnshaw has just posted on Twitter that March is seen as a one off bad month for funding due to certain usual payments not being received but things should be ok for rest of season.

[Snowflake Royal]

What usual payments would there be that wouldn’t be paid, other than money from Dai?

Ticket sales aren't going to be a lot different. Transfer fee installments aren't going to unexpectedly fluctuate as Uke says. TV money?

[Mid Sussex Royal]

What usual payments would there be that wouldn’t be paid, other than money from Dai?

Ticket sales aren't going to be a lot different. Transfer fee installments aren't going to unexpectedly fluctuate as Uke says. TV money?

I've no idea, but Earnshaw has spoken to several people at the club...I'm guessing there may be the odd quarterly payment ?

[The Royal Forester]

I wouldn't be surprised to see Bearwood sold to a Chinese company, probably one of that Dai has a stake in. An "advanced payment" (just enough to keep the club ticking over until RFC is no more,) Dai or his cronies, then own the stadium and training ground, Illegal in this country, probably, but would Yongge care about that as he is sitting pretty, and smirking, in his homeland. Houses may not be able to be built on Bearwood, but could it become a Sporting Complex, with the space for many different sports to be held.

[WestYorksRoyal]

I wouldn't be surprised to see Bearwood sold to a Chinese company, probably one of that Dai has a stake in. An "advanced payment" (just enough to keep the club ticking over until RFC is no more,) Dai or his cronies, then own the stadium and training ground, Illegal in this country, probably, but would Yongge care about that as he is sitting pretty, and smirking, in his homeland. Houses may not be able to be built on Bearwood, but could it become a Sporting Complex, with the space for many different sports to be held.

Tbf, turning it into a sporting complex would be a sensible move by the club. It's far too big for us, so if we convert 50% of it into something that generates income that's great. But obviously I wouldn't want to see it happen in the context you outline.

[windermereROYAL]

£1m shortfall this month if sources are to be believed, we`re fucked.

[Mid Sussex Royal]

The funding gap this month is around £1m according to several sources on Twitter.

By my maths if we sell out the 3 home games on sale currently we'd get near-ish...

[WestYorksRoyal]

How is a deficit that big even possible? The Athletic reported in autumn that our monthly wage budget was c. £700k and that we before we got players like Ejaria, McIntyre and Holmes off it. There must be other creditor balances due.

No idea how they do this. Perhaps a push on tickets can squeeze out an extra £100k, get another £200k from SCL. It's near impossible to see a path to £1m. And if they do the early ST idea, potential buyers won't like seeing one of their big income streams used up now.

[Clyde1998]

I wouldn't be surprised to see Bearwood sold to a Chinese company, probably one of that Dai has a stake in. An "advanced payment" (just enough to keep the club ticking over until RFC is no more,) Dai or his cronies, then own the stadium and training ground, Illegal in this country, probably, but would Yongge care about that as he is sitting pretty, and smirking, in his homeland. Houses may not be able to be built on Bearwood, but could it become a Sporting Complex, with the space for many different sports to be held.

Tbf, turning it into a sporting complex would be a sensible move by the club. It's far too big for us, so if we convert 50% of it into something that generates income that's great. But obviously I wouldn't want to see it happen in the context you outline.

This. If you could have a facility capable of hosting National League-level football matches and Championship-level rugby matches, then you have the possibility of the Rams, Reading City, Woodley United and/or Wokingham & Emmbrook playing there for a small fee. You'd also have the possibility of hosting women's and youth matches there - not needing to open the Madejski Stadium up for less than 4,000 people.

Obviously not going to happen in the near future - at least as long as the club would be making the decision.

[Snowflake Royal]

How is a deficit that big even possible? The Athletic reported in autumn that our monthly wage budget was c. £700k and that we before we got players like Ejaria, McIntyre and Holmes off it. There must be other creditor balances due.

No idea how they do this. Perhaps a push on tickets can squeeze out an extra £100k, get another £200k from SCL. It's near impossible to see a path to £1m. And if they do the early ST idea, potential buyers won't like seeing one of their big income streams used up now.

I would have to guess someone has decided we're done and called in a loan early.

[Royals and Racers]

Could the PFA give us a loan ?

[Snowflake Royal]

Could the PFA give us a loan ?

Why would they?

[Elm Park Kid]

The big mystery around all of this is what is going on with Dai's finances. Sure - we all know that he doesn't care about the club anymore, but is too stubborn to accept reasonable offers to sell. But he's also undermining the value of the club by not funding our key commitments on time. He has paid the tax bill eventually in previous months - but only when he's been pushed by Pang.

It's hard to believe given his status and property portfolio that he couldn't cover this £1m we now owe - which would be in his own financial, and PR interest to do so. And he'd get plenty of money back when he sells.

This isn't so much cutting off your nose to spite our face as chainsawing your head off.

Like, if he genuinely doesn't have the liquid assets in the UK due to . . whatever . . then why doesn't he just sell? I am aware that there are 100% viable offers that he has turned down, some for stupid reason.

This feels like he deliberately wants to destroy the club .

[WestYorksRoyal]

If Dai had businesses sense, he'd have sold us the moment we got relegated, before shit hit the fan and arguably when our value as
L1 club would have been greatest.

All behaviour since then has been totally irrational and suggests he's not motivated by his finances. This has been the worry all along and is coming to a head now.

[tmesis]

This feels like he deliberately wants to destroy the club .

I don't think that's right. If that was the case he could have just liquidated on a whim ages ago.

I do think that he doesn't really care any more, and just wants to offload in the way that will maximise the money he can claw back.

[WestYorksRoyal]

This feels like he deliberately wants to destroy the club .

I don't think that's right. If that was the case he could have just liquidated on a whim ages ago.

I do think that he doesn't really care any more, and just wants to offload in the way that will maximise the money he can claw back.

Well then we should have accepted the viable offers on the table in November. Maybe the middle ground is bad advice. Maybe he genuinely believes he can squeeze more money out of the stadium and the training ground without a club to go with them. He's completely wrong if so, hopefully he doesn't learn that the hard way.

[tmesis]

This feels like he deliberately wants to destroy the club .

I don't think that's right. If that was the case he could have just liquidated on a whim ages ago.

I do think that he doesn't really care any more, and just wants to offload in the way that will maximise the money he can claw back.

Well then we should have accepted the viable offers on the table in November. Maybe the middle ground is bad advice. Maybe he genuinely believes he can squeeze more money out of the stadium and the training ground without a club to go with them. He's completely wrong if so, hopefully he doesn't learn that the hard way.

Nobody really knows what the offers were back then.

Ashley apparently only wanted the stadium, and that's the bit the brings in an income for Dai, so maybe he didn't want to sell just that.

[Pepe the Horseman]

The problem is Dai cares too much. He's being overly cautious because he wants to sell to someone with our best interests at heart.