CONFRIMED: Takeover collapsed; Back to square one

[windermereROYAL]

Pretty vague, but it would seem that Nigel Howe is going to front up today.

https://x.com/JR_1871/status/1836689208905249140

[SouthDownsRoyal]

As ever the biggest issue is no one knows what exactly is Dai’s endgame. He’s had a reasonable offer, sounds like he could just take the money and be shot of it

Surely the idea of going through the whole process again to get to wrangle an extra million or two makes no sense

He clearly can’t be bothered with the club now, just not idea what he is getting out of it at this point in time

Administration doesn’t help him at all. I’d happily take it right now though

Exactly this, he clearly has no interest why not sell up and move on

[katweslowski]

For me, the primary objective (as a fan) has to be clarity on the situation. I want to know:

1. Why did this deal fall through when it looked so close?
2. What other options are there now?
3. What is Dai's objective - not just "intent to sell the club" - actual information
4. Can we have regular and periodic updates, I am personally sick of just silence from the club for long periods of time
5. How does this now impact our finances for the next 3-6 months?
6. Assurances over our short term future?
7. Has Dai actually communicated with club officials?

Of course, I don't expect anything meaningful from these answers, just the same bland answers but they have to be asked.

...

My thoughts are similar to that by Hound, I just don't understand the issues. This club is still an attractive package in terms of the facilities, the team, the structure, recent-ish history, fanbase. It's got Championship DNA still. The longer he keeps this club, the less it will be worth.

I don't believe all those idiots on Twitter saying, "He just hates us", and "I think he saw Rob and how well he got on with fans and just decided to end us". For my own sanity I have stopped looking on Twitter, the number of idiots on there is unhelpful and outweigh the useful ones.

I doubt Dai Yonnge really knows anything about the fans or our feelings, probably oblivious to it all.

So WTF is he up to? Administration doesn't help him, liqudiation doesnt, selling all players and assets doesn't as that's just not going to return much and would take an extended period of time.

Objectively the best and easiest solution was for him to sell to a legitimate and trusted purchaser (Couhig and others), and walk away and get on with his miserable life.

...

Also as others say, I am deeply concerned about this once again. It's really upsetting that we looked so close, nearly had a new owner who looked really in touch with the fans and keen to be involved. Any changes will take months and months, and unlikely this season. So we've got January transfer window to get through and the summer to even hope to survive until.

It does feel like a never ending, unwinnable battle.

[SouthDownsRoyal]

For me, the primary objective (as a fan) has to be clarity on the situation. I want to know:

1. Why did this deal fall through when it looked so close?
2. What other options are there now?
3. What is Dai's objective - not just "intent to sell the club" - actual information
4. Can we have regular and periodic updates, I am personally sick of just silence from the club for long periods of time
5. How does this now impact our finances for the next 3-6 months?
6. Assurances over our short term future?
7. Has Dai actually communicated with club officials?

Of course, I don't expect anything meaningful from these answers, just the same bland answers but they have to be asked.

...

My thoughts are similar to that by Hound, I just don't understand the issues. This club is still an attractive package in terms of the facilities, the team, the structure, recent-ish history, fanbase. It's got Championship DNA still. The longer he keeps this club, the less it will be worth.

I don't believe all those idiots on Twitter saying, "He just hates us", and "I think he saw Rob and how well he got on with fans and just decided to end us". For my own sanity I have stopped looking on Twitter, the number of idiots on there is unhelpful and outweigh the useful ones.

I doubt Dai Yonnge really knows anything about the fans or our feelings, probably oblivious to it all.

So WTF is he up to? Administration doesn't help him, liqudiation doesnt, selling all players and assets doesn't as that's just not going to return much and would take an extended period of time.

Objectively the best and easiest solution was for him to sell to a legitimate and trusted purchaser (Couhig and others), and walk away and get on with his miserable life.

...

Also as others say, I am deeply concerned about this once again. It's really upsetting that we looked so close, nearly had a new owner who looked really in touch with the fans and keen to be involved. Any changes will take months and months, and unlikely this season. So we've got January transfer window to get through and the summer to even hope to survive until.

It does feel like a never ending, unwinnable battle.

Good post

[Sutekh]

So now Couhig has had his money paid back to him he`s no longer a creditor he doesn`t have the power to put us into administration are there any other routes or is it just Dai that can do it?
I`m thinking if we run out of money and he continues to be a cunt and not fund us it`s the end of the road.

Yes better we get through Admin so we still have the club in L2 or NL than wait for the arse to add another notch to his "clubs that I've destroyed" bedpost. This whole fiasco should be the final death knell for the utterly useless FL ownership and ffp guidelines and tests.

[Uke]

For me, the primary objective (as a fan) has to be clarity on the situation. I want to know:

1. Why did this deal fall through when it looked so close?
2. What other options are there now?
3. What is Dai's objective - not just "intent to sell the club" - actual information
4. Can we have regular and periodic updates, I am personally sick of just silence from the club for long periods of time
5. How does this now impact our finances for the next 3-6 months?
6. Assurances over our short term future?
7. Has Dai actually communicated with club officials?

Of course, I don't expect anything meaningful from these answers, just the same bland answers but they have to be asked.

...

My thoughts are similar to that by Hound, I just don't understand the issues. This club is still an attractive package in terms of the facilities, the team, the structure, recent-ish history, fanbase. It's got Championship DNA still. The longer he keeps this club, the less it will be worth.

I don't believe all those idiots on Twitter saying, "He just hates us", and "I think he saw Rob and how well he got on with fans and just decided to end us". For my own sanity I have stopped looking on Twitter, the number of idiots on there is unhelpful and outweigh the useful ones.

I doubt Dai Yonnge really knows anything about the fans or our feelings, probably oblivious to it all.

So WTF is he up to? Administration doesn't help him, liqudiation doesnt, selling all players and assets doesn't as that's just not going to return much and would take an extended period of time.

Objectively the best and easiest solution was for him to sell to a legitimate and trusted purchaser (Couhig and others), and walk away and get on with his miserable life.

...

Also as others say, I am deeply concerned about this once again. It's really upsetting that we looked so close, nearly had a new owner who looked really in touch with the fans and keen to be involved. Any changes will take months and months, and unlikely this season. So we've got January transfer window to get through and the summer to even hope to survive until.

It does feel like a never ending, unwinnable battle.

Good post

And now I know how to do Lists

1. Just
2. Like
3. This

[blueroyals]

For me, the primary objective (as a fan) has to be clarity on the situation. I want to know:

1. Why did this deal fall through when it looked so close?
2. What other options are there now?
3. What is Dai's objective - not just "intent to sell the club" - actual information
4. Can we have regular and periodic updates, I am personally sick of just silence from the club for long periods of time
5. How does this now impact our finances for the next 3-6 months?
6. Assurances over our short term future?
7. Has Dai actually communicated with club officials?

Of course, I don't expect anything meaningful from these answers, just the same bland answers but they have to be asked.

...

My thoughts are similar to that by Hound, I just don't understand the issues. This club is still an attractive package in terms of the facilities, the team, the structure, recent-ish history, fanbase. It's got Championship DNA still. The longer he keeps this club, the less it will be worth.

I don't believe all those idiots on Twitter saying, "He just hates us", and "I think he saw Rob and how well he got on with fans and just decided to end us". For my own sanity I have stopped looking on Twitter, the number of idiots on there is unhelpful and outweigh the useful ones.

I doubt Dai Yonnge really knows anything about the fans or our feelings, probably oblivious to it all.

So WTF is he up to? Administration doesn't help him, liqudiation doesnt, selling all players and assets doesn't as that's just not going to return much and would take an extended period of time.

Objectively the best and easiest solution was for him to sell to a legitimate and trusted purchaser (Couhig and others), and walk away and get on with his miserable life.

...

Also as others say, I am deeply concerned about this once again. It's really upsetting that we looked so close, nearly had a new owner who looked really in touch with the fans and keen to be involved. Any changes will take months and months, and unlikely this season. So we've got January transfer window to get through and the summer to even hope to survive until.

It does feel like a never ending, unwinnable battle.

Also, who is now running the football side of the club with Bowen gone. And when will the accounts be submitted to avoid any further sanctions

[Forbury Lion]

Takeover issues usually come down to money, for something to collapse so far in I would suggest the issue is one or more of the following

1. Seller tries to increase the price at the last minute
2. Buyer trues to decrease the price at the last minute
3. Buyer's funding falls through
4. Seller is unable to deliver on promised actions
5. Seller no longer wishes/needs to sell the club
6. Buyer finds something better is now available

I think we're all of the belief that the collapse is down to the seller rather than the buyer or indeed the process, but without one of the parties involved providing more details we don't know this for sure.

[Sutekh]

Or just an aswer to "what the **** is going on at Reading FC"!

If only we had proper investagative journalists in the local media.

[PieEater]

Couhig did not respond to FootBiz and almost certainly wouldn’t be allowed to say anything anyway, but there are very concerning whispers from those close to the deal that the financial pickle Dai has got himself into could mean it is almost impossible for the club to actually transact.

Could some of our resident accounts have a stab at what this could mean. Is he implying that it's no longer his to sell?

[katweslowski]

This is a basic question, but what does Administration actually mean? I could look this up of course, but can anyone put it into football club terms.

Who makes the decision, what are the consequences? Did Portsmouth do this years ago as well or any other clubs?
Can we do this without Dai?

[Forbury Lion]

Couhig did not respond to FootBiz and almost certainly wouldn’t be allowed to say anything anyway, but there are very concerning whispers from those close to the deal that the financial pickle Dai has got himself into could mean it is almost impossible for the club to actually transact.

Could some of our resident accounts have a stab at what this could mean. Is he implying that it's no longer his to sell?

Probably a good place to start would be:

1. Identify all the assets we consider to be part of the club - Football team, training ground, stadium, car park, anything like that
2. Figure out which companies own each or these
3. Figure out who owns the companies who own these and if owned by other companies, who owns them etc etc
4. Figure out what charges/secured loans are held against the assets/companies who own them (like a mortgage on a house which means you can't sell without repaying the debt)
5. Figure out if there are any government sanctions on any of the companies which would prevent a UK/US/Whatever owner from buying from them

Part of Nigel Howe's job should have been to streamline all this, get everything wrapped up into one nice little company which a buyer could then buy, However all this talk of negotiating with people in 100 countries and 20 timezones seems to suggest this is a mess.

[windermereROYAL]

This is a basic question, but what does Administration actually mean? I could look this up of course, but can anyone put it into football club terms.

Who makes the decision, what are the consequences? Did Portsmouth do this years ago as well or any other clubs?
Can we do this without Dai?

12 point deduction immediately, administrators bought in to find ways to pay the various creditors by cutting costs, redundancies players sales and anything they can sale.
once that`s done the skeleton that remains is left to pick up the pieces.

[SouthDownsRoyal]

Or just an aswer to "what the **** is going on at Reading FC"!

If only we had proper investagative journalists in the local media.

Tm dellor

[Forbury Lion]

This is a basic question, but what does Administration actually mean? I could look this up of course, but can anyone put it into football club terms.

Who makes the decision, what are the consequences? Did Portsmouth do this years ago as well or any other clubs?
Can we do this without Dai?

Earlier this week there was a Price of Football podcast interview with a former football club administrator which is worth a listen.

The administrators are appointed by creditors and their sole purpose is to ensure the creditors are paid, Selling the football club is part of this process to raise funds as is selling players. They know that results mean more cash in the door and the club is worth less if relegated and more if promoted and worth nothing if expelled form the league so they do factor this in and keep things ticking over.
Players go unpaid during administration with the PFA loaning the players cash, The PFA then become a football creditor and get paid all this back when the club is sold.
To trigger administration it needs someone owed money by the club which isn't paid at the agreed time to petition for it, However chances are they will only get 25% of their money back, unless it's a football creditor or HMRC.
The club will also get a points deduction, Not just if they go into administration but as was the case this year with Torquay Utd, If they announce they will do this they get hit right away, maybe also if the EFL believe it's going to happen.

[Mr Angry]

Administration is not a good thing generally; it means that a financial company will run Reading FC who only have one aim - to get as much money for the creditors.

If they can do that by selling entity (our football club) as a going concern, fine. If not, they will get what they can and then they will liquidate the entity.

Almost immediately you will see job losses as the first thing the administrators will do is stop the financial bleeding, and the quickest way to do that is by reducing head count by issuing redundancies. Other things will be stopping all "non-essential" expenditure.

Our only hope is that there is someone waiting in the wings for that to happen, and they then swoop in and offer a pittance for the club; the issue comes with what debts and liabilities are actually there, possibly hidden away - I think thats potentially what has screwed the Couhig deal, the emergence of things post-due diligence (maybe hidden by Dai to try and get the deal done?)

It might save us, but don't see administration as a white knight; it will be brutal - especially for the non-playing staff of the club, virtually all of whom are likely to be unemployed in the run up to Christmas.

[katweslowski]

Or just an aswer to "what the **** is going on at Reading FC"!

If only we had proper investagative journalists in the local media.

I think people expect too much to be honest. Firstly, the Reading Post or whatever it was called closed down due to lack of money, now we have the Reading Chronicle. Local media across the country is abysmal as no one will pay for it and a decreasing number of people buy newspapers.

Everything about our club at the minute is bad. I'm not sure how anyone can get reliable information from them. Who could do this?

Jonathan Low got continual abuse when he first took the position but won support over a number of years. People mentioning Tim Dellor, isn't he a BBC local Sports person? So that includes ALL sports, not just RFC. It would be unreasonable to expect him to be down there everyday.

People seem to think that some local rag journalist can somehow infiltrate the club and navigate the utter shite with Bowen, Howe, and Dai Yongge. It seems an impossible task for anyone. I doubt even those inside the club understand what's happening.

[Forbury Lion]

Or just an aswer to "what the **** is going on at Reading FC"!

If only we had proper investagative journalists in the local media.

Tm dellor

Might be a story for a journalist at The Athletic or another sporting publication to get stuck into

Maybe if fans organisations offered to help cover expenses or fund an investigative journalist it might get some traction and publicity too?

[Forbury Lion]

Administration is not a good thing generally; it means that a financial company will run Reading FC who only have one aim - to get as much money for the creditors.

If they can do that by selling entity (our football club) as a going concern, fine. If not, they will get what they can and then they will liquidate the entity.

Almost immediately you will see job losses as the first thing the administrators will do is stop the financial bleeding, and the quickest way to do that is by reducing head count by issuing redundancies. Other things will be stopping all "non-essential" expenditure.

Our only hope is that there is someone waiting in the wings for that to happen, and they then swoop in and offer a pittance for the club; the issue comes with what debts and liabilities are actually there, possibly hidden away - I think thats potentially what has screwed the Couhig deal, the emergence of things post-due diligence (maybe hidden by Dai to try and get the deal done?)

It might save us, but don't see administration as a white knight; it will be brutal - especially for the non-playing staff of the club, virtually all of whom are likely to be unemployed in the run up to Christmas.

Worth noting that Season ticket holders will be treated as creditors because we are owed the cash equivalent of the remaining fixtures, that means we are entitled to attend any meetings of creditors the administrators hold until such time as we no longer have any games owed to us.

[Mid Sussex Royal]

Or just an aswer to "what the **** is going on at Reading FC"!

If only we had proper investagative journalists in the local media.

I think people expect too much to be honest. Firstly, the Reading Post or whatever it was called closed down due to lack of money, now we have the Reading Chronicle. Local media across the country is abysmal as no one will pay for it and a decreasing number of people buy newspapers.

Everything about our club at the minute is bad. I'm not sure how anyone can get reliable information from them. Who could do this?

Jonathan Low got continual abuse when he first took the position but won support over a number of years. People mentioning Tim Dellor, isn't he a BBC local Sports person? So that includes ALL sports, not just RFC. It would be unreasonable to expect him to be down there everyday.

People seem to think that some local rag journalist can somehow infiltrate the club and navigate the utter shite with Bowen, Howe, and Dai Yongge. It seems an impossible task for anyone. I doubt even those inside the club understand what's happening.

Yes agree to an extent re the local press certainly.

I just hope who ever is there from the media later asks proper questions the fans want answers to.