League One side Reading have confirmed that club owner Dai Yongge has reached an agreement with a prospective buyer. The two sides have now entered into an exclusive negotiating session as a result of this move. Assuming everything goes according to plan, the ultimate transaction should take around two months.
Reading, the Bearwood Park training facility, and the Select Car Leasing Stadium will be sold as part of the deal.
“The club can confirm Mr. Dai has committed to a letter of intent with a potential purchaser of Reading Football Club. The parties will now enter a period of exclusive negotiation to agree the final terms. The completion is expected to take up to two months, at which time the purchaser will be announced.
“The transaction would include the transfer of Mr. Dai’s shareholding in The Reading Football Club Limited, as well as the Select Car Leasing Stadium and Bearwood Park training ground”, a statement said.
No formal announcement on the identity of the prospective buyer is available at this time. Nevertheless, three groups emerged in the last few weeks as possible suitors.
There is the Wilf family, owners of the Minnesota Vikings, and Sports.com, a US ownership group that is interested in Reading. The third option mentioned was Genevra Associates, an investment management firm based in Luxembourg.
Things looking up?
The announcement brings relief after a long and arduous ordeal; during Dai Yongge’s tenure, the club lost 18 points due to nonpayment of workers. What’s worse, two more points are temporarily suspended.
The sale of the Royals’ state-of-the-art Bearwood training facility to Wycombe Wanderers, a local team, marked the end of another turbulent week in Berkshire. A petition with more than 5,000 signatures may stop the League One club from finalizing the deal. Also, supporters have even gone as far as to demonstrate outside Adam’s Park, home of the Chairboys.
Reading suffered its first relegation to English soccer’s third tier, League One, in 20 years last year. What’s worse, in December of the same year, they had to let go of many important players and employees. Though things may not be as bleak as they seem.
Second time a charm for US ownership at Reading?
It has now come to light that the team in negotiations is based in North America, and that they have surpassed Genevra Associates to become the preferred bidders. They are reportedly well along in the process and may reach an agreement in principle within the next week, the Daily Telegraph says.
Despite a lack of involvement in Bearwood’s sale, former CEO Nigel Howe is acting as a broker for the transaction.
In their last-ditch effort to remain in League One, the Royals came dangerously close to providing exclusivity to the Swiss firm Genevra Associates just before Christmas. However, negotiations broke down.
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