Calls for EFL to intervene to solve Reading FC crisis

The club, known as the Royals, has had worsening fortunes for years, culminating in relegation from the Championship to League One for the season 2023-24 season, and a serious risk of a successive relegation.

Reading FC has been hit with a number of fines and points deductions as a result of alleged financial mismanagement and rule-breaking by its Chinese owner Dai Yongge.

There have been reports that Mr Yongge is struggling to move his money out of China to due to the Communist regime’s tightening of financial restrictions.

Now Matt Rodda, the Labour MP for Reading East, is calling for the EFL to do ‘all in its power’ to intervene and save the club from its difficulties.

In a letter to the EFL, Mr Rodda said:  “As you will be aware, Reading Football Club was founded in 1871 and is one of the oldest clubs in English football; it has played an important role in the lives of many generations of local families and many Royals fans are now desperately worried about their club’s survival.

“The very future of Reading FC has been jeopardised under the stewardship of the current owner, whose financial mismanagement has already resulted in the men’s team being placed on a transfer embargo and relegated from the Championship.”

He added that the club is now ‘languishing’ in 21st out of 24 places in League One and is at risk of  “successive relegations”.

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The letter comes as Mr Yonnge has been hit with a £50,000 fine for failing to meet financial deadlines over staff wages, amid ‘worrying’ reports of redundancies and cost-cutting measures.

Mr Yonnge has begun the process of selling the club, but there are fears that the sale is being delayed due to financial difficulties.

Fan pressure for a sale is mounting as a result of the Royals ‘Sell Before We Dai’ campaign.

Reading councillors, Matt Rodda, Labour MP for Reading East and James Sunderland, Conservative MP for Bracknell at the Sell Before We Dai march in Reading. Credit: Office of Matt Rodda MP

Mr Rodda continued: “Whilst Mr Dai and Reading FC’s CEO, Dayong Pang, are still publicly stating that the club is for sale, many fans are worried by recent reports that the sale is being delayed due to outstanding debts that the owners would need to pay before a transfer of ownership could proceed.

“This is a heart-breaking time for Royals fans who want to see urgent action to protect this much-loved club.

“I urge Mr Dai to make good on his stated intention to sell his majority shareholding of Reading FC to appropriate new owners at the earliest possibility, and before he does any further damage to the club’s prospects.

“In the meantime, he has the responsibility of ensuring that adequate funds are made available for the day-to-day running of the club, so that staff and players can be confident that their salaries will be paid.

“I would like to join the fan-led campaign groups in asking the EFL to do everything they can within their existing powers to intervene in this serious case and protect our club.”

The Reading FC stadium was made an asset of community value by Reading Borough Council last October following an application by fan group the Supporters’ Trust at Reading.