CONFRIMED: Latest rumours Confrimed as Unconfrimed

[WestYorksRoyal]

The article reads:

Reading owner Dai Yongge has flown into England for crucial takeover talks, in a major development for the crisis hit League One club.

Yongge is assessing a number of offers to buy the club and is expected to make a decision on a preferred bidder early next week.

Former Newcastle owner Mike Ashley and Genevra Associates, an investment group based in Luxembourg, are understood to be two parties interested in acquiring the club, who are currently bottom of the third tier.

Yongge is under huge pressure to sell up and the next few days are regarded as vital for Reading’s short-term future.

Once Yongge has selected a preferred bidder, a period of exclusivity will be granted for the party to complete a deal. If that process runs smoothly, Reading could have new owners by the start of next year.

Genevra Associates are understood to have recently submitted a revised and final bid, and remain hopeful of agreeing a deal with Yongge.

William Storey, the British businessman, recently pulled out of talks despite initially claiming he had agreed a contract and exclusivity in October.

Yongge, who is based in China, is ready to sell up after a stormy tenure in which the club has been docked 16 points by the Football League for financial breaches.

A winding-up order by HMRC was dropped earlier this week after Yongge settled an overdue tax bill, but the club remains in severe financial difficulty.

Mark Bowen, the head of football operations, admitted in a statement on Thursday that a sale of the club could be close.

“Daily operations at the club continue to be hamstrung by cashflow problems, the search for new owners is encouraging but naturally time-consuming,” he said.

“We are in constant discussion, negotiation and engagement with an encouraging number of individuals who, we believe, are all capable of making viable takeover bids.

“It is very difficult to speculate on the timescales involved, but I am very positive that this process is now nearing a much-needed conclusion.”

4 days ago.

Hurry the fcuk up Dai you useless c*nt.

[Stranded]

4 bids on the table, just waiting on Dai to pick one.

[Elm Park Kid]

Unfortunately this will be a situation where the least financially sensible person is going to be the one offering the most money.

[Sutekh]

Unfortunately this will be a situation where the least financially sensible person is going to be the one offering the most money.

So Mr Ashley likely to be the lowest bid though probably the most likely to "fly" through the ODT the quickest and take this mess off of Mr Dai so he can get back to his bomb shelters.

[Royal_jimmy]

Bradford
Bournemouth
Brentford
Coventry
Swansea

For a few more.

I wouldn't say Bournemouth and Brentford are bigger than us. Probably about the same size. Same as Bradford too.

Only club who have always been bigger is Coventry from that lot.

Only really Bradford and Coventry could be described as at least the same size as us (as we are now) at the time of their financial issues. It's even arguable whether Bournemouth or Brentford are bigger than us now (in terms of support at least).

Brentford maybe but Bournemouth no chance

[Royal_jimmy]

Unfortunately this will be a situation where the least financially sensible person is going to be the one offering the most money.

So Mr Ashley likely to be the lowest bid though probably the most likely to "fly" through the ODT the quickest and take this mess off of Mr Dai so he can get back to his bomb shelters.

Hopefully none of the other bidders aside from Mike Ashley pass the owners and directors test.

[WestYorksRoyal]

What has been the process for getting this far? Nigel Howe has been involved. Hopefully he's sifted out the total chancers and ensure those still involved are credible?

It feels like people who genuinely care have been involved in getting parties to the table, even if Dai's final decision will be entirely in his own self interest.

[Ascotexgunner]

What I don't get is the Red Bird bid. Though I understand they aren't exactly clean as an organisation, their sports investment fun is worth 8billion, they own AC Milan and 10% of Liverpool. We just seem too small for them.

[Lower West]

What I don't get is the Red Bird bid. Though I understand they aren't exactly clean as an organisation, their sports investment fun is worth 8billion, they own AC Milan and 10% of Liverpool. We just seem too small for them.

Feeder club. Somewhere to develop younger players who'll never make the top grade for resale. Liverpool churn plenty out every year who end up being farmed out. Ovie Ejaria started life there............

[Elm Park Kid]

The riches of the PL mean that pretty much any EFL club can be sold to investors as having the potential to increase in value 10 fold. And with all the Wrexham stuff there might be a few more people out there willing to believe that fairy tale.

But, sadly, the time frame in which Reading could achieve that has now been stretched out to realistically a minimum of 4 years. It's probably too long.

[Sutekh]

What I don't get is the Red Bird bid. Though I understand they aren't exactly clean as an organisation, their sports investment fun is worth 8billion, they own AC Milan and 10% of Liverpool. We just seem too small for them.

Feeder club. Somewhere to develop younger players who'll never make the top grade for resale. Liverpool churn plenty out every year who end up being farmed out. Ovie Ejaria started life there............

So, to make it clear, I take it an organisation/person can have financial involvement in more than one club in the same league system so long as they do not have the controlling interest in more than one of those clubs?

[Stranded]

The riches of the PL mean that pretty much any EFL club can be sold to investors as having the potential to increase in value 10 fold. And with all the Wrexham stuff there might be a few more people out there willing to believe that fairy tale.

But, sadly, the time frame in which Reading could achieve that has now been stretched out to realistically a minimum of 4 years. It's probably too long.

But if an owner gets the club at a decent price for a L1/L2 side with potential, the club can churn out decent youngsters to sell for decent fees then an owner could get a return on investment in the Championship.

[WestYorksRoyal]

The riches of the PL mean that pretty much any EFL club can be sold to investors as having the potential to increase in value 10 fold. And with all the Wrexham stuff there might be a few more people out there willing to believe that fairy tale.

But, sadly, the time frame in which Reading could achieve that has now been stretched out to realistically a minimum of 4 years. It's probably too long.

You make top end Championship in 4 years sound like a long time. It's not; it would be a great outcome. Ultimately you can buy a club with current PL aspirations for £60m, or buy a shitshow for £25m and turn it into that yourself. But it's a risky game, as you may well be funding £5m+ losses per annum to get there. It becomes easier in the Championship where top talent can fetch £20m to help turn you into profit. What's the equivalent in L1? £3m for a top player? And £1m in L2?

Also, I doubt any bids will be flat fees in our situation. There will be clauses for if the HMRC issue causes points deductions, and probably variable consideration amounts over 3 years or so where Dai gets more if we avoid relegation this season or get promoted in the near future.

[Elm Park Kid]

The riches of the PL mean that pretty much any EFL club can be sold to investors as having the potential to increase in value 10 fold. And with all the Wrexham stuff there might be a few more people out there willing to believe that fairy tale.

But, sadly, the time frame in which Reading could achieve that has now been stretched out to realistically a minimum of 4 years. It's probably too long.

But if an owner gets the club at a decent price for a L1/L2 side with potential, the club can churn out decent youngsters to sell for decent fees then an owner could get a return on investment in the Championship.

No EFL club has made any kind of meaningful profit in the last 10 years. The amount of money it would take to get up back up to the Championship is no doubt less than what our value would increase to - Championship clubs really aren't worth that much as they lose so much money and the opportunity to get promoted is still limited.

[Royal_jimmy]

I imagine the costs needed to bankroll us will be higher because of the lower attendances and TV money compared to higher levels. Be interesting to see the next level of accounts for this season when they're out. Bar Ejaria I expect no one in our team except Wing is on £3k/week or more.

[Elm Park Kid]

The riches of the PL mean that pretty much any EFL club can be sold to investors as having the potential to increase in value 10 fold. And with all the Wrexham stuff there might be a few more people out there willing to believe that fairy tale.

But, sadly, the time frame in which Reading could achieve that has now been stretched out to realistically a minimum of 4 years. It's probably too long.

You make top end Championship in 4 years sound like a long time. It's not; it would be a great outcome. Ultimately you can buy a club with current PL aspirations for £60m, or buy a shitshow for £25m and turn it into that yourself. But it's a risky game, as you may well be funding £5m+ losses per annum to get there. It becomes easier in the Championship where top talent can fetch £20m to help turn you into profit. What's the equivalent in L1? £3m for a top player? And £1m in L2?

Also, I doubt any bids will be flat fees in our situation. There will be clauses for if the HMRC issue causes points deductions, and probably variable consideration amounts over 3 years or so where Dai gets more if we avoid relegation this season or get promoted in the near future.

I mean, i did say 4 year minimum. I was just thinking how that kind of time frame might not appeal to the sort of investors who would be looking to buy and flip for profit. Someone like Mike Ashley is a different kettle of fish, he knows that industry and would enjoy the journey as much as the outcome. But, if i'm an American investment firm looking to buy into English football cheap i'm not sure I would be interested in buying a - club that is about to be relegated to the 4th tier. We do have advantages in terms of location, infrastructure, catchment area - but I might still be looking to buy someone like Bolton or Barnsley.

You have to consider just how absolutely shit the finances are from the top of the Championship down. People keep talking about developing and selling young players for a lot of money, but how often does that actually happen? It's not a viable business strategy, no club . . absolutely no club is making any kind of profit in the Championship. Yeah, if we became a PL promotion chasing side then the value of the club probably doubles from where we are now. But that's still not enough to cover the expected losses we'd incur getting there.

[WestYorksRoyal]

The riches of the PL mean that pretty much any EFL club can be sold to investors as having the potential to increase in value 10 fold. And with all the Wrexham stuff there might be a few more people out there willing to believe that fairy tale.

But, sadly, the time frame in which Reading could achieve that has now been stretched out to realistically a minimum of 4 years. It's probably too long.

But if an owner gets the club at a decent price for a L1/L2 side with potential, the club can churn out decent youngsters to sell for decent fees then an owner could get a return on investment in the Championship.

No EFL club has made any kind of meaningful profit in the last 10 years. The amount of money it would take to get up back up to the Championship is no doubt less than what our value would increase to - Championship clubs really aren't worth that much as they lose so much money and the opportunity to get promoted is still limited.

It's funny really, we all assume that an owner trying to profit from us would make sensible decisions, but you have to question the judgement of anybody trying to make money out of a football club, with a few exceptions like Man Utd, Arsenal etc., which is clearly not applicable here. It's such a high risk way of making money.

I believe SJM achieved it, but we're not worth the peanuts when he bought us. Brentford and Bournemouth owners could perhaps sell now and make a big return. Not Brighton; while Bloom in an excellent owner he has sunk a shit load of money in.

You can be sensible, smart, competent but ultimately your grand plan to turn a minnow into a giant and sell on at a profit can fall down with an injury to a star player or a dodgy decision in a big match.

[WestYorksRoyal]

The riches of the PL mean that pretty much any EFL club can be sold to investors as having the potential to increase in value 10 fold. And with all the Wrexham stuff there might be a few more people out there willing to believe that fairy tale.

But, sadly, the time frame in which Reading could achieve that has now been stretched out to realistically a minimum of 4 years. It's probably too long.

You make top end Championship in 4 years sound like a long time. It's not; it would be a great outcome. Ultimately you can buy a club with current PL aspirations for £60m, or buy a shitshow for £25m and turn it into that yourself. But it's a risky game, as you may well be funding £5m+ losses per annum to get there. It becomes easier in the Championship where top talent can fetch £20m to help turn you into profit. What's the equivalent in L1? £3m for a top player? And £1m in L2?

Also, I doubt any bids will be flat fees in our situation. There will be clauses for if the HMRC issue causes points deductions, and probably variable consideration amounts over 3 years or so where Dai gets more if we avoid relegation this season or get promoted in the near future.

I mean, i did say 4 year minimum. I was just thinking how that kind of time frame might not appeal to the sort of investors who would be looking to buy and flip for profit. Someone like Mike Ashley is a different kettle of fish, he knows that industry and would enjoy the journey as much as the outcome. But, if i'm an American investment firm looking to buy into English football cheap i'm not sure I would be interested in buying a - club that is about to be relegated to the 4th tier. We do have advantages in terms of location, infrastructure, catchment area - but I might still be looking to buy someone like Bolton or Barnsley.

My first consultation would be who is for sale. We are, they're not.

[massifheed]

while Bloom in an excellent owner he has sunk a shit load of money in.

Reminds me of (I think) Ron Dennis' quote about how to make a small fortune in Formula 1 - start out with a big fortune.

[Elm Park Kid]

You make top end Championship in 4 years sound like a long time. It's not; it would be a great outcome. Ultimately you can buy a club with current PL aspirations for £60m, or buy a shitshow for £25m and turn it into that yourself. But it's a risky game, as you may well be funding £5m+ losses per annum to get there. It becomes easier in the Championship where top talent can fetch £20m to help turn you into profit. What's the equivalent in L1? £3m for a top player? And £1m in L2?

Also, I doubt any bids will be flat fees in our situation. There will be clauses for if the HMRC issue causes points deductions, and probably variable consideration amounts over 3 years or so where Dai gets more if we avoid relegation this season or get promoted in the near future.

I mean, i did say 4 year minimum. I was just thinking how that kind of time frame might not appeal to the sort of investors who would be looking to buy and flip for profit. Someone like Mike Ashley is a different kettle of fish, he knows that industry and would enjoy the journey as much as the outcome. But, if i'm an American investment firm looking to buy into English football cheap i'm not sure I would be interested in buying a - club that is about to be relegated to the 4th tier. We do have advantages in terms of location, infrastructure, catchment area - but I might still be looking to buy someone like Bolton or Barnsley.

My first consultation would be who is for sale. We are, they're not.

According to Kieran Macguire, most EFL clubs are either secretly up for sale or open to offers.