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Details emerge from court on Reading’s future, Dai Yongge and threat of EFL disqualification

Details emerge from court on Reading’s future, Dai Yongge and a threat of EFL disqualification over their heads for the next few months.

On March 21st, 2025, Mr Justice Jacobs ruled against Reading Football Club owner Dai Yongge’s attempt to block a sale of the club to Redwood Holding Ltd, owned by Rob Couhig. The court rejected Dai’s injunction, allowing the sale to proceed.

Additionally, Dai failed the EFL’s owners & directors test due to debts in China, and the EFL plans to disqualify him on April 4th . If disqualified, Reading FC will have 30 days to finalise a sale or risk being expelled from the English Football League.

EFL STATEMENT:

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.

READING STATEMENT:

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.

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.

@TimDellor tweeted: “Here at the Commercial Court in London, waiting to see if @ReadingFC and Dai Yongge obtain an injunction to stop Rob Couhig blocking the sale of the club. Legally complex. Big couple of hours ahead in this long running ownership saga.

“The judge in Renhe (Yongge) v Redwood (Couhig) case says – mandatory injunction not granted. Key line – the EFL say they will disqualify Yongge from being a director as of Apr 4. That accelerates need for sale of club by that date.”

@Readingfanman: “EFL have written a letter to supplement argument to disqualify Dai Yongge based on overseas debt, which is a disqualifying event, demanding he resigns as director of the club has just been mentioned in court. #ReadingFC”

“@mjshrimper: “A London court has just been told Reading owner Dai Yongge has failed the EFL’s Owners & Directors Test due to debts/court rulings in China. Dai is trying to get an injunction against ex-Wycombe owner Rob Couhig, who is blocking Dai’s attempt to sell Reading. Not the best start.

“The context is that DY has again misrepresented his position & withheld key information from Couhig, a guy who he was going to sell the club to. The EFL letter about DY is scathing. More to come on this.”

@TomProspect detailed what was said in court:  The judge is reiterating his opinion that a sale can go ahead and money be put in escrow for the claim of Couhig for loss of profit etc can be heard at a later date #readingfc

It is said that Redwood’s motivation is “strong man tactics” ie “I’ve got a hold over your club so sell to me” but Couhig should give way for a new owner. Also agrees ring fencing sale proceeds solves the problem without giving one side an advantage over the other.

My personal opinion – I’m not sure Couhig is blocking this sale at all. There is an open solution to the sale going through (ring fencing a % of money in escrow) and that could be done. But Dai etc are trying to secure they receive full funding immediately.

Couhig’s lawyer is now making a point regarding the possibility of putting a % of money is escrow. They have concerns that the money would go into Hong Kong and never be seen. They also want a confirmed amount.

They say the charges “absolutely do not block a sale” but just “block a sale at the price Dai would prefer”

It would have been wise to have asked an EFL representative to be involved in this as both sides are arguing about whether disqualifying Dai as a director forces him to divest shares

Couhig’s lawyer has likened this whole hearing to someone asking for their mortgage to be removed so they can keep 100% of sale proceeds for themselves

Couhig’s lawyer says Dai has 3 choices: 1. Sell and put money in escrow, 2. Keep funding awaiting the outcome of the charges hearing, 3. Burn his whole house down and kill the club

Couhig’s lawyer says if some other form of security had been offered by Dai then we wouldn’t be here

Couhig’s lawyer claims the urgency for resolution has been manufactured

Couhig has claimed the new ownership is at minute 5 rather than 59 of a 60 minute mark. He says he feels it unlikely the new ownership would get EFL approval. Something we know to be incorrect

It is now back with the lawyer representing #readingfc who is arguing the EFL are actively trying to disqualify Dai which makes this urgent

It appears the #readingfc lawyer is saying that the club are now open to the court’s suggestion that a sale goes through with £12m going into escrow. Or perhaps just a portion of this amount. This could be significant.

They are also saying that Couhig’s claim that he would’ve made such a profit goes against all evidence, even looking most recently at Dai’s investment and lack of returns

They say there are “significant elements of unreality” to Couhig’s claim

#readingfc lawyer has proposed £6m be put into escrow to offer a partial security to Couhig

The judge has now confirmed by previous comment that #readingfc lawyer was instructed during this case that a % of sale proceeds could be put into escrow

Injunction denied but judge has asked it to be taken into consideration the escrow arrangement.

Let’s summarise a little – #readingfc went for an injunction today, that has been denied. So Couhig has won ❌ But we have identified potential solutions and also that a sale can still go ahead ✅

AND THAT’S IT. Judge finally says we will “live with the current status quo” but urges both parties to come to a solution. Thanks for following, hope it’s been of help. #readingfc 💙🤍

This is what fans are saying as details emerge from court on Reading’s future, Dai Yongge and threat of EFL disqualification…

Caroline Parker (@CazParker1871): “Well well well @EFL showing some teeth and have sent a letter wanting Dai disqualified. Let’s hope they continue to apply pressure in this regard (as I’ve been saying all along). Get him out!

“Club peddling the “Couhig blocking a sale” narrative and lots swallow it. Judge says “sale can go ahead and this be settled later” Well, this is awkward isn’t it? 🤣 Who will they blame now? All comes back to one man and his sister- as usual.

“How did we get to a place as normal football fans that just want to see 90 min of footy where we are watching online court battles, lobbying MPs, lobbying councils, marching, protesting, filling petitions, billboards, trying to influence the FGB and so much more. Years and years of this has taken its toll. Please can today mark a leap towards a new owner? Absolutely traumatising.

“So…. am I correct in that if Dai is DQ’d 2 weeks today, we’ve then got 30 days from that date to get the sale done? So 44 days?”

@Jamie_Hodder21:
Positive that the club can be sold.
We just need Couhig and the club to agree an escrow fee.
So here’s the timeline then.
Deadline 1. Escrow amount agreed and club is sold by the 4th April
Deadline 2. Escrow not agreed, Dai DQ from the league. Club now has to be sold within 30 days
Deadline 3. 4th May. Club will be disqualified from the league if not sold. #ReadingFC

@AnyGivenFriday1
My simple interpretation (for those like me who aren’t lawyers)
🔵 No injunction
🔵 Dai can still sell the club immediately if he holds back 12m in Escrow
🔵 Dai likely to be suspended on April 4
🔵 Club can be suspended from league if Dai still in charge come April
The overwhelming positive is the club can be sold – IF Couhig and Dai/Rehne agree an escrow fee.
God i cannot wait for all of them to just fuck off.

@Royals_360: So #readingfc who were playing in the premier league just over a decade ago have essentially been given 44 days to live & not a peep from any national press. Insane.

@iJC106: 44 days left of our beloved football club until the lights are off for the final time. I’ve tried to find some sense of optimism but right now I have absolutely zero. Fuck. #ReadingFC

@RoyalReading106: Let’s be realistic, he’s not going to sell. He’s had some many opportunities and hasn’t… say goodbye to #readingfc what a terrible result

@richiec87: Buzzing for March’s ‘monthly update’ #readingfc

@TalkReading: So it looks like there is an end date… By 4th May we will either have a new owner or be disqualified from the EFL. Absolutely mental position to be in. #readingfc

@dinghugo6: 44 days and we will be kicked out of the EFL. The club we all know and love, countless memories and great days out. How fucking sad. #readingfc

@bealec1988: So the EFL are going to potentially kick us out of the league for having a shit owner that they approved in the first place. Make it make sense! #FuckTheEFL #readingfc

@AJKendrick: The EFL have done exactly what they should have done a year or so ago. It’s a ballsy move (when made official), it gives one of their oldest clubs a month and a half to do a deal or be suspended from the league. Calling Dai’s bluff to get a sale completed. #readingfc

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