Reading FC fans weigh up administration after rumours circulate

Anthony Smith, formerly of the Reading Chronicle, broke news last week that it was looking increasingly likely that the club would fall into administration soon.

Heard from a good source that the administrators will be in before the end of the week. #readingfc

— Anthony Smith (@Smudgersport) October 9, 2023

This has been disputed by the manager, Ruben Selles, but is a topic that continues to play on the minds of supporters.

The Reading Chronicle called out for fans to get in touch, and they replied in their droves- some for and plenty against the prospect of falling into administration.

There's pro's and cons. Pro's, we get Dai out....Cons, a lot of people could/will lose their jobs. There's a lot more to it than that obviously, but people are sick of this now, they just want a means to an end. Admin is not THE answer, though. Hopefully RBC are close. 🤞

— Bobbins (@ohbobbins) October 11, 2023

Administration would be a disaster for the club and the people that work for it that will lose their jobs this season and next season when we are in L2. The only way out is for a buyer to come in. Otherwise the rebuild gets that much harder if it happens at all. Dai must sell

— drawn2water73 (@drawn2water73) October 11, 2023

If it's the only way to get shot of Dai then maybe that's the way to go, of course it has big risks if we can't get a buyer for almost certainly a L2 club.

— Dave (@Dave71442968569) October 11, 2023

Ideally we find a new owner before that

— MJG (@Emjay8989) October 11, 2023

the big concern for me is what happens with the stadium. a proper sale ensures that ends up in the hands of the new owners

— Luke Rogers (@saiint) October 11, 2023

It would all be condemn us to League 2 football next year which when you look at Portsmouth and Bolton would give us an absolute mountain to climb to get back into the championship, not to mention the effect it would have on the staff and those that rely on the club.

— Matt (@lines_aviation) October 11, 2023

It will get Dai out but it can hold serious implications. I just hope Red Bird Captial are still interested or that someone who doesn’t have a dodgy history puts in a good bid asap. If we go into admin and stay up, then it would be an absolute miracle

— Luke (@Luke1871_) October 11, 2023

Unless someone is willing to pay Dai what he wants for the club, administration is the ONLY way forward because it’s the only way he leaves. The downside is point deductions, no guarantee of a new owner, and inflated(more than they already are) rent prices to use the stadium

— Tatum 🏴󠁧󠁢󠁥󠁮󠁧󠁿 (@Tatum1871) October 11, 2023

We need Dai out asap. He won't sell at the current asking price. If we get relegated to L2 and then go into administration that's catastrophic. I'd rather go into administration now and hopefully get enough points to stay up or at least start L2 with a clean slate.

— Blues1871 (@Blues1871) October 11, 2023

Catastrophe I reckon. Assuming it would be accompanied by another points deduction and no guarantee of new ownership.

— ‘King Lord Above Dissident (@SimonFrost3) October 11, 2023

Kieran Maguire, football finance expert and award-winning author, believes the best solution for all parties is a structured sale.

"The administration route comes with a points deduction automatically, so that’s a downside," he told the Reading Chronicle exclusively. It does make the club a more attractive proposition from the perspective of the new owner because they would only be buying the asset of Reading Football Club. He would not inherit any of the legacy liabilities, such as the tax bill being run up by Dai Yongge. Your local creditors will take a hit because the EFL says you get a points deduction for going into administration, and unless you pay 25 per cent of what is owed to creditors, you will get a further 15-point deduction coming out of it. All the local suppliers, who have provided goods and services to Reading Football Club in good faith, are either sympathetic towards the club or supporters of the club so they tend to be a bit more generous. That is the downside of administration, which I think is ignored.

"The best solution would be to find someone willing to buy the club, Dai Yongge writes off the debts owed to him and sells to the new owner with tiered payments. Sell it for a pound, because the club are losing £500,000 a week based on the more recent accounts, and if they get promoted back then you get a set payment and if you get promoted to the Premier League you get another set payment. That is how I would be looking to structure it. Whether he can afford to do that, or whether his pride comes before his common sense, is a separate issue."