Reading hit by fresh embargo as new buyer emerges
Reading are 16th in League One after four wins and four defeats in nine games
- Published
Reading have entered into a new period of exclusivity with an unnamed buyer - on the same day the club has been handed a fresh transfer embargo by the English Football League.
The stricken League One club has suffered from fines, points deductions and fan protests during Dai Yongge's tumultuous reign as owner and had a previous transfer ban lifted in August 2023.
In a statement on the Reading said the new embargo was due to "the late filing of financial accounts to Companies House, and relates to the 2022-23 accounting period".
Reading added they believed the embargo would be lifted once the overdue accounts are finalised, which they hoped would happen "at the earliest opportunity".
The Royals were relegated to League One in 2022-23 and have been deducted 18 points overall during Chinese businessman Dai's tenure as owner.
A deal for former Wycombe Wanderers owner Rob Couhig to buy the club fell through last month after an agreement could not be reached.
"The club can confirm it has agreed to a period of exclusivity with a potential purchaser," the statement added.
"Both parties are working hard to finalise terms with the intention to complete a sale at the earliest opportunity.
"This exclusivity period also includes further provision to fund the club until the transaction's intended completion.
"The proposed sale will include Mr Dai's shareholding in Reading Football Club Limited, as well as the Select Car Leasing Stadium and Bearwood Park Training Ground."
Years of turmoil with points docked and relegation
Yongge and his sister Dai Xiu Li completed their takeover of Reading in May 2017 shortly before the club lost the Championship play-off final on penalties to Huddersfield Town.
That proved to be the high point of their time in charge of the Royals.
A seventh-placed finish in the 2020-21 season was Reading's only top-half league finish under Yongge as financial problems began to bite.
Supporters carried out a series of protests last season and the home game against Port Vale in January was abandoned after hundreds of fans invaded the pitch.
The club's financial problems led to Yongge putting the club up for sale, which also impacted the women's side, who finished 10th out of 12 teams in the Championship last season.
Ex-Wycombe owner Couhig's unsuccessful attempt to purchase the club ended last month.