CONFIMRED - The final countdown

[Sutekh]

RFC LATEST TWEETED

Rob Couhig has agreed a £25million deal to buy Reading, now agreeing to pay more up front than he did last summer in order to complete the purchase this month.

[WestYorksRoyal]

*sigh*. The Twitter nonsense for the week is starting up. Some guy with a fake blue tick who has never been ITK about anything has an "inkling" that the sale will be confirmed this morning. I bet people get excited over it.

Lots of people want to believe it'll be done this week ahead of Lincoln, so expect a lot of bullshit. I'm still going for 28 April or so after another extension.

[Mid Sussex Royal]

RFC LATEST TWEETED

Rob Couhig has agreed a £25million deal to buy Reading, now agreeing to pay more up front than he did last summer in order to complete the purchase this month.

Line for line what the sun said last week.

[mumbo-jumbo]

Is it really true that Rob Couhig plans to close or downgrade the academy or is this just some tenuous, self-feeding rumour with no substance?

I'm more than prepared to give him a chance (like him even) but would be very concerned by this direction of flow. Surely bringing on and selling a few academy players is the best way to man and fund lower league teams who won't be able to exist on turnstile fees alone?

[PieEater]

If as rumoured our monthly costs are £1m a month = £12m a year, and the first team squad wage bill is guessed at £4 - 5m, then the academy would need to make around £8m a year profit for us to break even , That's not going to happen, so I think we can wave goodbye to the Cat 1 status for the forseeable future

[JedMaxwell]

Is it really true that Rob Couhig plans to close or downgrade the academy or is this just some tenuous, self-feeding rumour with no substance?

I'm more than prepared to give him a chance (like him even) but would be very concerned by this direction of flow. Surely bringing on and selling a few academy players is the best way to man and fund lower league teams who won't be able to exist on turnstile fees alone?

You hear whispers but I don't think any of it is substantiated. It's looking like it will be him that takes over, and he will have a lot of work to do to win over a fair amount of fans I think. Closing down the academy would eliminate almost all good will, and even though he's American I don't think he's that stupid.

Of course savings need to be made and people appreciate that, but the academy has literally sustained us this season so I think a good owner knows they will need to put money into it in order for it to keep bearing fruit. There are some incredibly good people working in the academy and throughout the club in general, and their commitment and hard work throughout Dai's ownership, and covid, should be rewarded with a more settled environment in which to work.

[Forbury Lion]

Is it really true that Rob Couhig plans to close or downgrade the academy or is this just some tenuous, self-feeding rumour with no substance?

I'm more than prepared to give him a chance (like him even) but would be very concerned by this direction of flow. Surely bringing on and selling a few academy players is the best way to man and fund lower league teams who won't be able to exist on turnstile fees alone?

The big premiership teams seem to use their academies more as a way of making money than developing talent for their first team, If we can develop players good enough to play at a higher level, perhaps after a spell in our first team then I can see the academy more than paying for itself. Maybe this is the plan though, have an academy which pays for itself?
I think we'd actually attract more talent if they know our plan is not to tie them to our club but let them move to Premiership teams same as Bindon and Olise.

[WestYorksRoyal]

Is it really true that Rob Couhig plans to close or downgrade the academy or is this just some tenuous, self-feeding rumour with no substance?

I'm more than prepared to give him a chance (like him even) but would be very concerned by this direction of flow. Surely bringing on and selling a few academy players is the best way to man and fund lower league teams who won't be able to exist on turnstile fees alone?

Reports are unsubstantiated. Hearsay and whispers.

[The Cap]

Is it really true that Rob Couhig plans to close or downgrade the academy or is this just some tenuous, self-feeding rumour with no substance?

I'm more than prepared to give him a chance (like him even) but would be very concerned by this direction of flow. Surely bringing on and selling a few academy players is the best way to man and fund lower league teams who won't be able to exist on turnstile fees alone?

You hear whispers but I don't think any of it is substantiated. It's looking like it will be him that takes over, and he will have a lot of work to do to win over a fair amount of fans I think. Closing down the academy would eliminate almost all good will, and even though he's American I don't think he's that stupid.

Of course savings need to be made and people appreciate that, but the academy has literally sustained us this season so I think a good owner knows they will need to put money into it in order for it to keep bearing fruit. There are some incredibly good people working in the academy and throughout the club in general, and their commitment and hard work throughout Dai's ownership, and covid, should be rewarded with a more settled environment in which to work.

......even though he's American

[Snowflake Royal]

Is it really true that Rob Couhig plans to close or downgrade the academy or is this just some tenuous, self-feeding rumour with no substance?

I'm more than prepared to give him a chance (like him even) but would be very concerned by this direction of flow. Surely bringing on and selling a few academy players is the best way to man and fund lower league teams who won't be able to exist on turnstile fees alone?

You hear whispers but I don't think any of it is substantiated. It's looking like it will be him that takes over, and he will have a lot of work to do to win over a fair amount of fans I think. Closing down the academy would eliminate almost all good will, and even though he's American I don't think he's that stupid.

Of course savings need to be made and people appreciate that, but the academy has literally sustained us this season so I think a good owner knows they will need to put money into it in order for it to keep bearing fruit. There are some incredibly good people working in the academy and throughout the club in general, and their commitment and hard work throughout Dai's ownership, and covid, should be rewarded with a more settled environment in which to work.

I'm amazed at the number of people who seem unable to recognise some or all of these points:

1) A League One club can't afford a Cat One Academy beyond the very short term.
2) Downgrading an Academy to save money isn't closing it.
3) Downgrading an Academy isn't a permanent irrevocable act.
4) Even if you maintain funding and facilities in League One you won't retain the same quality of player, so the cost becomes even less manageable, even with a clear pathway to first team football they'll go to a PL club

[Armadillo Roadkill]

I see three options for a new owner of Reading FC:

- Just do what every other League 1 club does and stay within tight financial guidelines and hope you're simply better at running a club than our competitors.
- Spend big like Birmingham and gamble on getting promoted,
- Or they can divert their investment into the academy, which provides both the backbone of the team and a revenue stream when players are sold. This allows them to put money into building success in the longer term, and saves on spending on player recruitment.

My understanding is that money spent on the academy spend, like spending on the women's team, the stadium etc. is seen as virtuous, and therefore does not get included in the financial restrictions. You can spend as much and you like on the academy and not get points deducted.

[blueroyals]

I don’t think this closes before the 22nd

I find it hard to believe both parties have already agreed a renegotiated price given:

1) currently a X% chance we will be a championship club next season. In 6 weeks that will be either 100% or 0%. Club will see huge swings in valuation over the coming weeks as a result.

2) sale of assets like Smith, Bindon and satisfaction of the Olise clause since the previous negotiation

3) affect of RC litigation on club’s fair market value

4) affect of EFL threats on Dai’s appetite to sell

I’m not feeling hopeful a deal will be agreed and stuck to.

[Snowflake Royal]

I see three options for a new owner of Reading FC:

- Just do what every other League 1 club does and stay within tight financial guidelines and hope you're simply better at running a club than our competitors.
- Spend big like Birmingham and gamble on getting promoted,
- Or they can divert their investment into the academy, which provides both the backbone of the team and a revenue stream when players are sold. This allows them to put money into building success in the longer term, and saves on spending on player recruitment.

My understanding is that money spent on the academy spend, like spending on the women's team, the stadium etc. is seen as virtuous, and therefore does not get included in the financial restrictions. You can spend as much and you like on the academy and not get points deducted.

Your first point contains quite a wide variation of approach. It's not like every club except Brum does the exact same things

[Linden Jones' Tash]

I don’t think this closes before the 22nd

I find it hard to believe both parties have already agreed a renegotiated price given:

1) currently a X% chance we will be a championship club next season. In 6 weeks that will be either 100% or 0%. Club will see huge swings in valuation over the coming weeks as a result.

2) sale of assets like Smith, Bindon and satisfaction of the Olise clause since the previous negotiation

3) affect of RC litigation on club’s fair market value

4) affect of EFL threats on Dai’s appetite to sell

I’m not feeling hopeful a deal will be agreed and stuck to.

But isn't this like almost every M&A deal out there - all the contingencies are laid out in the SPA - and some may be mitigated on achieving certain milestones....

The 'unknown unknowns'... such as whether any of the assets under consideration have been used as collateral for loans hereto unreported are the big hurdles....

That is where the Due Diligence has to be on point.

Whether we are L1 or Championship should be factored into the deal comewhatmay.

[From Despair To Where?]

I personally don't think promotion would be a good thing this season. We've already got something of a squad rebuild in the offing regardless of what league we are in so it would be doubly difficult in the Championship. I think we'd struggle to stay up and we'd see our better players depart.

[MartinRdg]

I personally don't think promotion would be a good thing this season. We've already got something of a squad rebuild in the offing regardless of what league we are in so it would be doubly difficult in the Championship. I think we'd struggle to stay up and we'd see our better players depart.

Beggars can't be choosers though. Who knows when we may get another chance of promotion even with a new owner....

[under the tin]

I personally don't think promotion would be a good thing this season. We've already got something of a squad rebuild in the offing regardless of what league we are in so it would be doubly difficult in the Championship. I think we'd struggle to stay up and we'd see our better players depart.

Totally agree with you.
There's only a miniscule chance that Forest will give us another season with Bindon, whether we're a Champ club or not. He, on his own is going to be a big miss. Yids is in the twilight of his career, Campbell is not measurably better than the kids he is keeping out of the side, and we need to recruit a decent number 9 experienced in the dark arts of football to mentor Wareham.
The bones of a good side is certainly there, but needs fleshing out once the embargo is lifted.
Obvs, I'd be delighted with a play off victory, but in my heart of hearts I think it's a bit too soon for these players.

[Mr Angry]

Agreed re: promotion being probably too soon for this side............but we would take it nevertheless.

[From Despair To Where?]

Oh, I'd take promotion, especially breaking our play off hoodoo but I think medium term, it would set us back.

[Snowflake Royal]

I personally don't think promotion would be a good thing this season. We've already got something of a squad rebuild in the offing regardless of what league we are in so it would be doubly difficult in the Championship. I think we'd struggle to stay up and we'd see our better players depart.

Beggars can't be choosers though. Who knows when we may get another chance of promotion even with a new owner....

You make the most of wherever you are, but I agree with FDTW, I think the cluh is stronger in the medium and longer term failing to go up this season and doing it next seasom or the one after. But obviously nothing is guaranteed and it probably being worse for the club doesnt mean you dont try to do the best you can regardless.