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Reading release statement regarding transfer embargo and proposed club sale

Reading release statement regarding transfer embargo and proposed club sale

Reading have issued an official statement addressing the ongoing situation regarding their transfer embargo and potential club sale.

The League One club has confirmed that owner Dai Yongge is receptive to credible offers from interested parties looking to acquire the financially challenged outfit.

The announcement comes after Reading were hit with a new transfer embargo last Friday due to their inability to settle an outstanding tax bill owed to HMRC, which was due last week.

The Royals have acknowledged their ongoing financial struggles and revealed that discussions with potential investors are ongoing.

“The club continues to suffer significant cashflow issues,” the statement read.

“In striving to establish sources of stable external investment, we can confirm that there has been significant interest from a number of parties seeking involvement in the club. 

“Discussions and due diligence processes with a number of these potential investors continue apace.

“Our owner, Mr Dai [Yongge], is openly inviting further credible offers of interest and declarations of intent from parties eager to pursue a potential sale of the club.”

Earlier on Friday, it was confirmed that Reading owner Yongge, who took over the club in 2017, had paid the players and staff their September wages.

However, the club’s recurrent delays in sorting out staff wages have resulted in point deductions imposed by the English Football League (EFL) as disciplinary measures.

Yongge is actively seeking potential buyers for Reading, and it is understood he is demanding approximately £80 million for Reading – a valuation that includes the club’s various assets.

One of his holding companies owns the Select Car Leasing Stadium, acquired in a £24.5m deal during his first full season as owner in 2017/18.

Additionally, the state-of-the-art Bearwood training facility has also been included as a part of the complete package to sweeten a potential deal.

The EFL penalised the Berkshire club with a three-point deduction earlier this month because they failed to deposit sufficient funds into an account to cover wages. 

They had previously received a one-point deduction in August for failing to sort out player wages on time during the 2022/23 campaign.

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