Reading Football Club has announced a looming transfer embargo as the club grapples with the possibility of being disqualified by the EFL.
The club provided an update on the current crisis, stemming from owner Dai Yongge`s disqualification by the EFL due to debts in China.
Yongge did not pass the owners and directors test and is required to sell the club to avoid EFL disqualification.
The sale of the Royals is in progress as part of a takeover.
An exclusivity agreement is in place for a prospective owner to purchase the club, stadium, and training facilities.
However, a legal dispute with Rob Couhig is delaying the completion of the sale.
Couhig, former owner of Wycombe Wanderers, had previously agreed to a £30 million deal to buy Reading.
This deal later fell apart, with Couhig claiming significant losses due to Reading breaching the exclusivity agreement.
Reading`s statement mentioned: "Exclusivity remains with the proposed buyer, and the sale includes the club, Select Car Leasing Stadium, and Bearwood Park Training Facility. All parties are committed to completing the transaction as soon as possible."
"Regarding the ongoing litigation with Mr Couhig and the recent Commercial Court hearing, the club confirms that an alternative security proposal has been presented to Mr Couhig`s legal team. It is hoped this proposal will be quickly accepted to resolve the security issue and facilitate the sale."
"The club also wants to clarify that Mr. Dai’s disqualification as a Director means he must relinquish his interests in Reading Football Club and is dedicated to fulfilling this requirement."
Reading also confirmed the lifting of a previous transfer embargo after submitting their 2022/23 accounts.
However, they are facing a new transfer embargo if the 2023/24 accounts are not filed by the EFL`s deadline on March 31, which the club considers "highly unlikely" to meet.
