The English Football League (EFL) has issued a strong ultimatum to Dai Yongge, the majority shareholder of Reading Football Club. The EFL has demanded that Dai either sell his majority shareholding or fulfill his funding requirements for the club. This comes after Dai was fined £50,000 by the EFL.
Reading is currently facing a worsening financial crisis under Dai’s ownership. The situation reached a breaking point when protesting supporters invaded the pitch during Saturday’s match against Port Vale, resulting in the game being abandoned in the first half.
Over the past three seasons, Reading has already been deducted 16 points due to a series of EFL charges. This season alone, they have had four points docked, leaving them in the relegation zone of League One.
In December, Dai was personally charged with misconduct for failing to deposit 125% of the club’s monthly wage bill into a designated account. He received an initial fine of £20,000 for this offense. However, he missed the latest deadline to meet the same funding obligations, leading to a further suspended fine of £50,000.
The EFL had initially argued for a 12-month disqualification for Dai, but an independent commission rejected this proposal. Instead, a financial sanction was imposed. Reading is also facing a separate charge for non-payment of monies owed to HMRC, which will be heard by a commission next month.
The EFL has expressed its concern about Dai’s ability and motivation to financially support the club. They have urged him to either adequately fund the club or make arrangements to sell his majority shareholding to new owners who can provide the necessary support.
The EFL will be meeting with Reading fans this week to discuss the situation. The abandonment of Saturday’s match is likely to have repercussions, and the EFL Board will address these events in their upcoming meeting.
In order to shed more light on the dire situation at Reading, The Athletic has published a special report detailing the challenges faced by the club, including players eating microwave meals, staff working in coats, and redundancies.
It is clear that urgent action is needed to secure the future of Reading FC, its staff, supporters, and the local community. The EFL is prepared to take further action against Dai if necessary, but they hope that he will choose to either adequately fund the club or sell his majority shareholding to new owners.