Reading could be thrown out of the English Football League if their owner, Dai Yongge, does not sell the club before 5 April. The Chinese businessman was disqualified as an owner under the league’s owners’ and directors’ test last month, an action made public at commercial court in London on Friday.
During the proceedings, a letter from the EFL was referenced by the lawyer Martin Budworth, who was acting for Dai and Reading, detailing their decision to disqualify Dai. The EFL previously pushed to disqualify Dai after multiple breaches of regulations but was overruled by an independent panel and instead a financial sanction was imposed.
It is understood the reason for Dai’s disqualification is related to business matters in China and not related to his running of the club.
An EFL statement said: “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.”
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