Under-fire Reading owner Dai Yongge has been told by the EFL that he must sell the club by early next month after being ‘recently’ disqualified under the EFL’s Owners’ and Directors’ Test.
A deadline of April 4, imposed by the EFL, emerged at a hearing at the Commercial Court in London on Friday, where Yongge was trying to get an injunction against ex-Wycombe owner Rob Couhig – who he claimed was blocking his attempt to sell the Royals.
The request for a mandatory injunction was not granted by judge Mr Justice Jacobs. Chinese businessman Yongge argued that he is unable to sell while Couhig – who previously tried to buy the club – and his securities remain in place.
The Royals announced that they had entered into a period of exclusivity with an unnamed party, understood to be Robert Platek, the owner of the Portuguese club Casa Pia, over a potential takeover late last month.
At the time, they said that they were optimistic the deal could be completed quickly and it would be “for the benefit of all concerned”.
A number of attempted takeovers – including Couhig’s – have fallen through since Yongge committed to a letter of intent to sell the club last March.
In a statement on Friday, the EFL said: “Following its disclosure in open court earlier today, the League can confirm that Mr Yongge has been recently disqualified under the EFL’s Owners’ and Directors’ Test.
“The disqualification requires Mr Yongge to divest his interests in the club, and in the event that he fails to do so within the agreed timeframe, the League will consider all options available within its regulations to bring the matter to a conclusion.
“The League continues to work closely with Reading FC to progress a sale of the club at the earliest opportunity, in order to end the current uncertainty surrounding its future for its staff, supporters and wider community.”
Under league relegations, failure to meet the deadline could result in the League One club being suspended from playing matches.
Following Friday’s hearing the Royals issued a statement of their own saying they would work with Couhig and the EFL to find a resolution.
“The club acknowledges the judge’s clear indication that the parties should find a solution to the current impasse regarding the sale of the club by way of its owners providing alternative security or a payment into escrow,” the statement said.
“To allow a sale to proceed, the club looks forward to working with Mr Couhig to resolve this element of his claim.
“Mr Dai remains committed to working with the EFL to sell the club and secure its long-term future.”
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