CONFRIMED: Latest rumours Confrimed as Unconfrimed

[Lower West]

I read something on Twitter last week that sounded stupid but given the above posts could be plausible....

Dai is attempting to negotiate a dividend on any academy sales for the next 2 years, given his investment in it...

"Earn out" clauses that allow the seller to get their share in the profits for several years afterwards are common in M&A, basically a way of knocking down the day 1 price and making the seller put the money where their mouth is that this business they're selling is as great as they say.

If Dai perceives that the up front price for the club is low, this is an obvious way to try and claw it back; we all know our academy is the real deal. Whether Couhig, ourselves or any other observer would agree with Dai's perception on the price is another matter, but that's just how these things work. It's exactly the sort of T&Cs that could slow down a deal.

Dai is unlikely to be in control. There's other vested interests in recouping as much money as possible.

[WestYorksRoyal]

I read something on Twitter last week that sounded stupid but given the above posts could be plausible....

Dai is attempting to negotiate a dividend on any academy sales for the next 2 years, given his investment in it...

"Earn out" clauses that allow the seller to get their share in the profits for several years afterwards are common in M&A, basically a way of knocking down the day 1 price and making the seller put the money where their mouth is that this business they're selling is as great as they say.

If Dai perceives that the up front price for the club is low, this is an obvious way to try and claw it back; we all know our academy is the real deal. Whether Couhig, ourselves or any other observer would agree with Dai's perception on the price is another matter, but that's just how these things work. It's exactly the sort of T&Cs that could slow down a deal.

Dai is unlikely to be in control. There's other vested interests in recouping as much money as possible.

Really? Do share.

[On Strings]

"Earn out" clauses that allow the seller to get their share in the profits for several years afterwards are common in M&A, basically a way of knocking down the day 1 price and making the seller put the money where their mouth is that this business they're selling is as great as they say.

If Dai perceives that the up front price for the club is low, this is an obvious way to try and claw it back; we all know our academy is the real deal. Whether Couhig, ourselves or any other observer would agree with Dai's perception on the price is another matter, but that's just how these things work. It's exactly the sort of T&Cs that could slow down a deal.

Dai is unlikely to be in control. There's other vested interests in recouping as much money as possible.

Really? Do share.

One of the Thais still has shares doesn't he?
And weren't some debts transferred into shares to help us out?

[Lower West]

"Earn out" clauses that allow the seller to get their share in the profits for several years afterwards are common in M&A, basically a way of knocking down the day 1 price and making the seller put the money where their mouth is that this business they're selling is as great as they say.

If Dai perceives that the up front price for the club is low, this is an obvious way to try and claw it back; we all know our academy is the real deal. Whether Couhig, ourselves or any other observer would agree with Dai's perception on the price is another matter, but that's just how these things work. It's exactly the sort of T&Cs that could slow down a deal.

Dai is unlikely to be in control. There's other vested interests in recouping as much money as possible.

Really? Do share.

Small matter of £132 million of loans taken out by subsidiary companies of the Group. With hindsight seems obvious where the money went. The bet went wrong big time. Events from the end of October 2022 confirm this with Dai being personally indicted.

[RG30]

American financier Rob Couhig is nearing a deal to buy English football club Reading FC from Chinese businessman Dai Yongge, according to people familiar with the matter.

Couhig is leading a consortium that’s in advanced talks to acquire Reading, which competes in the third tier of English football, for about £30 million ($38 million), according to the people, who asked not to be identified discussing confidential information.

Under terms being discussed, the investor group will pay off Reading’s existing debt with third-party creditors, the people said. An agreement could be reached within days, they added.

Couhig had aimed to reach a deal before Reading’s first match of the new season against Birmingham City FC last weekend, which he would then have attended in person, one of the people said. But complexities in the negotiations, including who owns Reading’s stadium, have delayed the deal’s progress, the person said.

In a July 26 post on X, the social media platform formerly known as Twitter, Couhig said he had signed up for a subscription to Reading’s official TV channel. “Well, that’s sorted. Royals TV package purchased. Should be quality preparation for the season. Anxious to see the boys in action,” he wrote.

Couhig declined to comment. A representative for Reading and a spokesperson for Walker Morris LLP, Dai’s law firm, also declined to comment.

If a deal is struck, Couhig would return to a familiar part of England. The town of Reading lies just to the west of London and about 20 miles from High Wycombe, the home of Wycombe Wanderers FC. Couhig is the previous owner of that club, which competes in the same league as Reading. He sold his stake in Wycombe Wanderers earlier this year.

Founded more than 150 years ago, Reading FC has struggled financially in recent years. Renhe Sports Management Co., the holding company for the club, reported a loss of £21 million for the financial year ended June 30, 2022, its latest accounts show.

Chiron Sports Group, a capital and advisory firm co-founded by Leo Rifkind, provided financing to Reading during last season, the people said. Rifkind could join the board of Reading following any takeover by Couhig to help with the transition, they said.

Dai acquired Reading in 2017. Under his ownership, the club has been docked a total of 18 points for breaking football’s financial rules, contributing to its demotion into the third tier of English football.

Chinese investors have been exiting bets on European football. This year, Lai Guochuan agreed to sell control of English club West Bromwich Albion FC, while, in Italy, Oaktree Capital Management took ownership of Inter Milan after its Chinese owner — Suning Holding Group Co. — failed to repay a loan.

https://www.bloomberg.com/news/articles/2024-08-13/rob-couhig-nears-30-million-deal-for-reading-football-club?utm_medium=social&cmpid%3D=socialflow-twitter-bloomberguk&utm_campaign=socialflow-organic&utm_source=twitter&utm_content=bloomberguk

[Linden Jones' Tash]

The notion of time has lost all meaning in this saga....

It's been "10 days away" for months and what's the betting that "in days"... turns out to be weeks....

[WestYorksRoyal]

The timeline could make sense in hindsight to be fair. When did the rumours about Couhig get seriously strong? 6 weeks ago? It could be that was simply initial terms agreed, rather like an offer on a house being accepted. Hopefully now we're near the end; details worked through and EFL checks completed.

Those early reports were from individuals with no experience in how difficult these deals can be, especially when Dai has spun a disastrous financial web for the club.

[Linden Jones' Tash]

given we are only being fed scraps of rumours and anonymous briefings, at least the delays only appear to be due to negotiating details of the deal - business is business so that's only to be expected.

[Sutekh]

Bloomberg's report on Couhig's take over bid

[MartinRdg]

Bloomberg's report on Couhig's take over bid

Always promising to see it on a site like Bloomberg but it's not over until the fat lady sings (or the contracts are signed)

[blythspartan]

I haven’t seen them but apparently there are a couple of tweets on x from our new potential owners confirming they will be attending the game this Saturday.

[Elm Park Kid]

Yeah, from what i've heard it's now all agreed.

[Pepe the Horseman]

Yeah, from what i've heard it's now all agreed.

[Sutekh]

Yeah, from what i've heard it's now all agreed.

Think I’ll wait for an official statement from a reliable source before starting the celebrations unless you’re Rob Couhig

[Sutekh]

Tim’s word on the deal is that it is pretty much done, the last hurdle is now Rob persuading the FL that the figures in his business plan add up. As he is a forensic accountant you’d think he knows how to balance things.

[Snowflake Royal]

Tim’s word on the deal is that it is pretty much done, the last hurdle is now Rob persuading the FL that the figures in his business plan add up. As he is a forensic accountant you’d think he knows how to balance things.

So you're happy to listen to Dim, but not EPK, who has an actual track record?

[Linden Jones' Tash]

given we are only being fed scraps of rumours and anonymous briefings, at least the delays only appear to be due to negotiating details of the deal - business is business so that's only to be expected.

Spoke too soon, if this EFL/business plan issue is legit...
Austerity on its way and that never ends well...

[On Strings]

given we are only being fed scraps of rumours and anonymous briefings, at least the delays only appear to be due to negotiating details of the deal - business is business so that's only to be expected.

Spoke too soon, if this EFL/business plan issue is legit...
Austerity on its way and that never ends well...

It's all rumours for now. Equally there's been rumours the EFL are happy with RC's business plan and we're being held up by Dai who is allegedly haggling over stadium ownership. The waters are just too muddied to know what the hell is going on.

[Brogue]

given we are only being fed scraps of rumours and anonymous briefings, at least the delays only appear to be due to negotiating details of the deal - business is business so that's only to be expected.

Spoke too soon, if this EFL/business plan issue is legit...
Austerity on its way and that never ends well...

Depends what the end game is. Austerity From a government perspective I’d whole heartedly agree. In football terms? I don’t see it as a bad thing.

[windermereROYAL]

given we are only being fed scraps of rumours and anonymous briefings, at least the delays only appear to be due to negotiating details of the deal - business is business so that's only to be expected.

Spoke too soon, if this EFL/business plan issue is legit...
Austerity on its way and that never ends well...

Depends what the end game is. Austerity From a government perspective I’d whole heartedly agree. In football terms? I don’t see it as a bad thing.

Where did that rumour even come from? I`ve seen nothing.