The attempted takeover of Reading by former Wycombe Wanderers owner Rob Couhig has fallen through after a breakdown in negotiations.
American lawyer and businessman Couhig had a long period of exclusivity with the League One club’s current owner Dai Yongge but was unable to finalise an agreement.
A club statement said “alternative options” would now be pursued.
“Mr Dai remains committed to the sale of Reading Football Club and provisions are in place to fund the club until a transaction is completed,” the statement continued.
“The club acknowledges and appreciates the financial support provided by the potential purchaser during recent months. All loans have now been paid back to the potential purchaser in full along with the accrued interest.”
BBC Radio Berkshire understands money received from a sell-on clause in the contract of former player Michael Olise, who joined Bayern Munich in the summer, is helping to keep the club financially stable for now.
Reading’s recent financial difficulties under Yongge meant the club’s women’s side – a Women’s Super League outfit as recently as May 2023 – had to withdraw from the Championship in June, and they will start next season in the fifth tier.
The club were also docked six points for financial issues last season as they finished 17th in League One.
The Royals are currently 12th in England’s third tier after five games, picking up two wins, two defeats and a draw.
Years of turmoil under Yongge
Yongge and his sister Dai Xiu Li completed their takeover of Reading in May 2017 shortly before the club lost the Championship play-off final on penalties to Huddersfield Town.
That proved to be the high point of their time in charge of the Royals.
A seventh-placed finish in the 2020-21 season was Reading’s only top-half league finish under Yongge as financial problems began to bite.
They were first deducted six points by the English Football League for breaching profit and sustainability rules in November 2021.
A further six-point penalty followed in April 2023 for failing to comply with the terms of an agreed business plan for the previous breach, contributing to their relegation from the Championship at the end of that season.
The club were placed under a series of transfer embargoes, and were deducted another six points last season for a combination of failing to pay wages and a tax bill on time.
In total, Reading have been deducted 18 points under Yongge’s ownership.
Fans carried out a series of protests last season, including throwing tennis balls on to the pitch at games, and their home game against Port Vale in January was abandoned after hundreds of fans invaded the pitch.
The club’s financial problems led to Yongge putting the club up for sale, which also impacted the women’s side, who finished 10th out of 12 teams in the Championship last season.
In announcing the women’s team’s withdrawal from the second tier, Reading said that maintaining the side’s status was “just not possible without significant owner funding”.