The disastrous downfall of Reading Football Club

IT seems a far cry from the days of Reading destroying the championship in record breaking fashion like they did in 2005/06, in which they registered the highest points total gained in an English professional league season.

It seems even further the days in which the Royals were in the top flight finishing as high as eighth in their best ever season.

The present seems to be much bleaker for the Berkshire-based club.

Following their loss to non-league Eastleigh they are out of the FA cup in the second round.

Their form is not any better as the club sit 23rd in the League One table.

On the pitch Reading are not finding it easy, however it would be easy for the players and staff to be disrupted by the off-field interruptions.

Much of these interruptions would be because of the ownership led by Dai Yongge.

Yongge and his company Renhe became majority shareholders in May 2017, owning a 75% stake in the club.

Reading was not the company’s first endeavour into football ownership as it first took over Beijing Renhe (formerly Shaanxi Baorong Chanba) in 2007.

This club eventually folded in 2017.

Following their first venture into football, Renhe took an interest in English football.

Yongee saw an opportunity to take Premier Side Hull City in August 2016 with a £130 million pound bid which was unsuccessful.

Following that failed attempt Renhe would later successfully their share in Reading after passing the English Football Leagues fit and proper test.

The downfall to follow would prove Yongee and his company were not suitable owners for Reading.

Due to the owners troubling handling of the club Reading would come by some substantial financial issues which would result in numerous point deductions.

It is reported the Royals recorded pre-tax losses of £146 million over five years.

The English Football League has a set limit of £13 million pre-tax loses annually which would allow you to accumulate a maximum losses of £65 million over five years.

Readings losses were more than double this threshold forcing the EFL to act against the club.

Due to these financial irregularities the club would be hit with a six point deduction last season in which they would be relegated from the Championship.

Without the deduction the club would have spent this season still in the Championship with Cardiff City instead taking the spot in League One.

The latest nail in the coffin is the club being placed under transfer embargo.

The recent embargo for the Royals was only lifted on August 3rd 2023 but due to unpaid tax for the month of September, the club will once again be unable to make transfers for the foreseeable future.

Yongge has admitted on multiple occasions he is seeking new owners for the club as his time at the Select Car Leasing Stadium is slowly ticking down to the delight of Reading supporters.