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

[Zammo]

EFL Statement

As Reading FC supporters are only too aware, it has in recent months become increasingly clear that Mr Dai Yongge is no longer in a position - or does not have the motivation - to support the Club financially as he did following the change of control in 2017.    

In November 2023, the EFL called for the disqualification of Mr Dai following the failure to fund the deposit account to cover player and staff salaries following repeated breaches of EFL Regulations. This was ultimately rejected by an Independent Disciplinary Commission and a financial sanction was imposed instead.  

The EFL has now received confirmation that Mr Dai did not meet last Friday’s latest deadline to fund the deposit account as ordered, meaning he has been in default for nearly four months.  As a result – and as per the terms of the 15 December decision - a further £50,000 fine has now been imposed, taking the total to £80,000.  

His continued failings mean that once again the Club's hardworking staff have no reassurance as to payment of wages and demonstrates a clear disregard for his obligations as a director of the Club.  

In respect of this issue, the League will now consider all available options it has under the Regulations and will have no hesitation in bringing further charges against Mr Dai. 

In the meantime, and for the sake of the future of Reading FC, its staff, supporters, and local community we urge Mr Dai either to fund the Club adequately or to make immediate arrangements to sell his majority shareholding to appropriate new owners so everyone can move forward with renewed optimism.  

 For our part, we will work with Mr Dai, his team, and the Club plus any potential purchaser to navigate and meet the requirements of the Regulations as quickly as is physically possible and bring an end to this difficult period for all parties.  

 What followed the events at the end of last week were the unfortunate scenes on Saturday afternoon that led to the abandonment of the fixture versus Port Vale, and further demonstrated the impact the current situation is having on everyone associated with the Club.  

However, entering the field of play is a criminal offence and puts the safety of all participants at risk.  The EFL Board will discuss events at Saturday’s match during its meeting later this week as it has a responsibility to the League’s member clubs and the competition to ensure all 72 Clubs meet the requirements of the rules as previously agreed by EFL Clubs.  

 Finally, the League has been in regular dialogue with the Supporters Trust at Reading (STAR) in recent months and has always made – and will continue to do so – itself available to recognised supporters’ groups to discuss challenging situations and, regarding current matters involving Reading, has arranged to meet with representatives of a number of groups in the next 24 hours. 

We are so fcuked.

[WestYorksRoyal]

It seems the only thing Dai funds properly are his lawyers to defend him. He should have been banned by now - the EFL have got a lot wrong but they're doing what they can here.

[Winston Biscuit]

I wonder if the EFL won't give us another points deduction as they know how toxic a decision that would be?

[Elm Park Kid]

It seems the only thing Dai funds properly are his lawyers to defend him. He should have been banned by now - the EFL have got a lot wrong but they're doing what they can here.

Though, banning him could end up being the quickest way of destroying Reading FC. If he just refuses to sell we'd be expelled from the EFL.

[NathStPaul]

I wonder if the EFL won't give us another points deduction as they know how toxic a decision that would be?

I reckon they probably have to for financial mismanagement, can't see them going against their own disciplinary handbook as it sets a dangerous precedent. I don't think we'd get points deducted for future abandonments, we'd just be given a 3-0 defeat I reckon.

[Winston Biscuit]

I wonder if the EFL won't give us another points deduction as they know how toxic a decision that would be?

I reckon they probably have to for financial mismanagement, can't see them going against their own disciplinary handbook as it sets a dangerous precedent. I don't think we'd get points deducted for future abandonments, we'd just be given a 3-0 defeat I reckon.

rules are rules and all that so I get it, but I just wonder if all the public attention this has now gained will come into their minds as must know they will come in for sizable criticism if they deduct us points again

[WestYorksRoyal]

I think the situation will be making them squirm to be honest. Regulator incoming, maximum attention. They'll be dreading the possibility that this ends with liquidation almost as much as us.

I believe Rick Parry is facing a select committee tomorrow (pre scheduled, nothing to do with the past week). It will be incredibly obvious that his organisation has no control over this situation whatsoever.

[Snowflake Royal]

The FL is doing everything within its power to get shot of Dai. For pcunts like Dai though, there's very little they can do.

[TiagoIlori]

Shame it took an abandonment for them to express any sort of empathy. But this raises the still unclear question, they don’t have the power then who does? At the moment feels like only the UK government can intervene.

[Snowflake Royal]

Shame it took an abandonment for them to express any sort of empathy. But this raises the still unclear question, they don’t have the power then who does? At the moment feels like only the UK government can intervene.

That's because only the UK Gov can intervene. And to be honest it seems too late for that.

[Dirk Gently]

I wonder if the EFL won't give us another points deduction as they know how toxic a decision that would be?

They also know they'd be setting a precedent for other clubs and pitch invasions not to be punished if they don't. Almost certainly it'll be a suspended points deduction, as happened at Blackpool v Huddersfield in 2015.

[Elm Park Kid]

I think the situation will be making them squirm to be honest. Regulator incoming, maximum attention. They'll be dreading the possibility that this ends with liquidation almost as much as us.

I believe Rick Parry is facing a select committee tomorrow (pre scheduled, nothing to do with the past week). It will be incredibly obvious that his organisation has no control over this situation whatsoever.

Dai is currently an embarrassment for the EFL and draws unwanted attention to how little protection fans have. They know that should a club like Reading actually go under then they are all in a lot of trouble. The incoming Labour government would bring the hammer down on them and end the 'gravy train' for a good while. So - I can only assume that they will now be twisting like mad to do whatever they can to push Dai out whilst keeping Reading alive. This is a situation where clubs who would otherwise cry "unfair treatment" will be silent as Reading going under would be a serious risk to every owner of an EFL club.

[Elm Park Kid]

duplicate

[Elm Park Kid]

Shame it took an abandonment for them to express any sort of empathy. But this raises the still unclear question, they don’t have the power then who does? At the moment feels like only the UK government can intervene.

That's because only the UK Gov can intervene. And to be honest it seems too late for that.

I'm not sure what existing powers even the UK government has to intervene? I'm pretty sure that they can't take the club away from Dai just because he's a shit owner. They weren't even able to do anything directly with Abramovich's ownership of Chelsea - all they could do was sanction the club.

[Dirk Gently]

Shame it took an abandonment for them to express any sort of empathy. But this raises the still unclear question, they don’t have the power then who does? At the moment feels like only the UK government can intervene.

That's because only the UK Gov can intervene. And to be honest it seems too late for that.

I'm not sure what existing powers even the UK government has to intervene? I'm pretty sure that they can't take the club away from Dai just because he's a shit owner. They weren't even able to do anything directly with Abramovich's ownership of Chelsea - all they could do was sanction the club.

They need to change company law so that football clubs are legally different entities to factories and supermarkets. That's a massive task, and won't happen in a hurry!

[Clyde1998]

Shame it took an abandonment for them to express any sort of empathy. But this raises the still unclear question, they don’t have the power then who does? At the moment feels like only the UK government can intervene.

That's because only the UK Gov can intervene. And to be honest it seems too late for that.

I'm not sure what existing powers even the UK government has to intervene? I'm pretty sure that they can't take the club away from Dai just because he's a shit owner. They weren't even able to do anything directly with Abramovich's ownership of Chelsea - all they could do was sanction the club.

They could, but would almost certainly face a legal challenge which could be viewed as a waste of government time and resources (from a national political POV).

[Hound]

Shame it took an abandonment for them to express any sort of empathy. But this raises the still unclear question, they don’t have the power then who does? At the moment feels like only the UK government can intervene.

That's because only the UK Gov can intervene. And to be honest it seems too late for that.

And obvs if we’re relying on Rishi and his shitshow to intervene and do something useful we really are up shit creek

Suppose sending Pang and Yongge to Rwanda may be a start

[72 bus]

They give him a deadline or the club is expelled.

Can't own a Football League Club, if the club isn't in the Football League.

But in that instance, surely it accelerates the route to liquidation? If you have all the assets of a football club but nowhere for them to play, why not just get rid of the lot and make use of the land to sell to get money back (stadium protection excepted)?

Pretty much, but it does solve the FL's problem.

The stadium isn't worth much as anything other than a stadium because the ground is contaminated and the stadium would need to be demolished. But maybe Dai thinks he can get more selling off the club's land and assets piecemeal once the club is gone, than he can selling the club as a package. Or maybe he knows he'll get less, but he sees it as not being beaten and shown up by someone else.

The ground is no longer contaminated as the club spent 10 million having it decontaminated before the stadium was built.
If it was still contaminated Royal Elm park would not be happening.

[Snowflake Royal]

I think the situation will be making them squirm to be honest. Regulator incoming, maximum attention. They'll be dreading the possibility that this ends with liquidation almost as much as us.

I believe Rick Parry is facing a select committee tomorrow (pre scheduled, nothing to do with the past week). It will be incredibly obvious that his organisation has no control over this situation whatsoever.

Dai is currently an embarrassment for the EFL and draws unwanted attention to how little protection fans have. They know that should a club like Reading actually go under then they are all in a lot of trouble. The incoming Labour government would bring the hammer down on them and end the 'gravy train' for a good while. So - I can only assume that they will now be twisting like mad to do whatever they can to push Dai out whilst keeping Reading alive. This is a situation where clubs who would otherwise cry "unfair treatment" will be silent as Reading going under would be a serious risk to every owner of an EFL club.

Labour are likely to have a few higher priorities. Like completely rebuilding all public services, the Economy, Justice etc.

[WestYorksRoyal]

I think the situation will be making them squirm to be honest. Regulator incoming, maximum attention. They'll be dreading the possibility that this ends with liquidation almost as much as us.

I believe Rick Parry is facing a select committee tomorrow (pre scheduled, nothing to do with the past week). It will be incredibly obvious that his organisation has no control over this situation whatsoever.

Dai is currently an embarrassment for the EFL and draws unwanted attention to how little protection fans have. They know that should a club like Reading actually go under then they are all in a lot of trouble. The incoming Labour government would bring the hammer down on them and end the 'gravy train' for a good while. So - I can only assume that they will now be twisting like mad to do whatever they can to push Dai out whilst keeping Reading alive. This is a situation where clubs who would otherwise cry "unfair treatment" will be silent as Reading going under would be a serious risk to every owner of an EFL club.

Labour are likely to have a few higher priorities. Like completely rebuilding all public services, the Economy, Justice etc.

Agree, but tbf Keir is a genuine football fan unlike the Tory bandwagon jumpers, and I assume he'd privately share quite a few sentiments about the effect of money on the game. Whether he'd consider it worth expending political capital on when he's inheriting a skip on fire is another matter.