Reading fan group Sell Before We Dai have written to Lucy Frazer MP, Secretary of State for DCMS, in regards to the running of the football club.

The group of supporters behind organised protests against owner Dai Yongge since the summer, over £11,000 has been raised toward the efforts.

In their latest action, senior government officials have been sent a powerful letter regarding the English Football League, Reading Football Club and the promise of an independent regulator for the game.

Seen by the Reading Chronicle, the letter says: "We are writing to you as representatives of Sell Before We Dai, a fan-led campaign that is advocating for a change of ownership at Reading Football Club. We are deeply concerned about the future of our club, which has been mismanaged and neglected by its current owner, Mr Dai Yongge. We are also concerned about the future of football and ensuring that the situation that Reading FC is currently facing does not happen to other football clubs throughout the football pyramid in future.

"Since the formation of the campaign in June 2023, we have engaged with organisations across football and are alarmed by the limited powers current authorities, including the English Football League (EFL), have to protect football clubs.

"Reading, a football club that has existed for 152 years, are currently awaiting a verdict from the Independent Disciplinary Commission against the owner. The outcome of this could be disqualification as a club owner and Director. If that happens, the owner would have 28 days to divest his shares in the club, otherwise the club could be suspended and eventually lose its licence to play in the Football League. This would be a devastating outcome for the club and its fans, akin to the fate that befell Bury FC in 2019.

"We are therefore urging you, as the Secretary of State for the Department for Culture, Media and Sport, to intervene in this matter and ensure that Reading FC is protected from such a scenario. We ask you the following questions:

 

  1. What contingency plans does the UK Government have in place to prevent Reading from being suspended from the Football League, in the event the owner fails to sell the club within the 28-day deadline?

 

  1. What actions can the UK Government take to support the EFL, Football Association (FA) and, in future, the Independent Regulator for English Football (IREF), in enforcing rules and regulations that hold such owners accountable for their conduct as club owners and directors?

 

  1. What further actions can the UK Government take to promote good governance, transparency and sustainability in football club ownership, and to empower fans and communities in having a say in the running of these historic institutions?

"We believe that these questions are of vital importance, both now for Reading Football Club, and also for the wider footballing community in England.

"We appreciate your efforts to establish the Independent Regulator for English Football and we fully support its aims and objectives. We believe that the IREF is a vital and necessary step to protect the integrity and viability of football clubs, which are not just businesses, but also community assets and cultural institutions.

"However, we are concerned that the IREF may not have enough powers to effectively regulate and intervene in cases of mismanagement, negligence, or malpractice by club owners. We are also concerned that the current legal framework may not adequately recognise the special status and value of football clubs, and may limit the ability of the IREF to act in the best interests of clubs and their fans.

"Therefore, we urge you to consider the following proposals, which we have developed in consultation with corporate lawyers who have extensive experience in sport:

 

  • Give the IREF the power to intervene in cases of financial distress, insolvency, or administration, and to appoint independent trustees, monitors, or administrators to oversee the affairs of the club and ensure its continuity and stability. This could be similar to the way that the Charity Commission has the power to intervene in cases of misconduct or mismanagement by charities and to appoint interim managers or receivers to protect the assets and beneficiaries of the charity.
  • Give the IREF the power to impose sanctions on owners who breach the rules or act against the interests of the club and its fans, such as fines, bans, or even forced sales. This could be similar to the way that the Competition and Markets Authority (CMA) has the power to impose penalties or remedies on businesses that engage in anti-competitive practices or abuse their dominant position in the market.
  • Introduce a statutory definition of a ‘football club’ that acknowledges its unique nature and importance as a community asset. This could be similar to the way that community benefit societies (CBSs) and community interest companies (CICs) are defined and regulated under industrial and provident society (IPS) law and company law respectively.

"We believe that these proposals would strengthen the role and authority of the IREF, and would enable it to act more effectively and decisively in cases of club ownership issues. We also believe that these proposals would reflect the public interest and the will of the fans, who want to see their clubs protected and preserved for future generations.

"We acknowledge that the Department for Culture, Media and Sport does not have the sole authority to implement these changes and that the Department for Business and Trade would need to amend the Companies Act 2006 to enable them. However, we are aware of the widespread consensus across Parliament and football that it is essential for the IREF to have the necessary powers and resources to fulfil its main purpose of safeguarding football clubs, which will entail legislative change.

"If Reading Football Club remains in a precarious position at the time of the IREF's implementation, we would like to request that it considers the case of Reading FC as a priority. We would also like to request that the IREF conducts a historical review of Reading FC from 2017 to 2024, to assess whether the current owner would have passed the strengthened owners’ and directors’ test, and what actions the IREF would have taken if it had been in place at that time.

"We hope that you will take our proposals and requests into account, and that you will work with us and other stakeholders to ensure the long-term health and prosperity of football and its clubs. We look forward to hearing from you soon.

"Thank you for your time and attention. We will be publishing a copy of this letter on social media, as it is a matter of great importance to Reading fans and the wider football community."

The group, in regular contact with the club and EFL, are awaiting a response.

Saturday's home match with Charlton Athletic has been planned as a day where supporters dress up as clowns due to Dai 'making the club a circus.'