Embargos, HMRC Payment defaults, non payment of wages, the usual under Dai Wrongge

[blythspartan]

It would seem the Thai account that reported SCL have paid the tax isn`t very reliable, now reporting there will be grim news reported in the next week or so.

That account is pretty unreliable. I’ve kind of accepted the worst so for me it can’t get much grimmer.

I am enjoying supporting the team this season and taking each game at a time. As much as getting beat by Wycombe yesterday wasn’t an enjoyable experience it really pales into insignificance given our overall situation. I just want it to be over now one way or the other.

[windermereROYAL]

It would seem the Thai account that reported SCL have paid the tax isn`t very reliable, now reporting there will be grim news reported in the next week or so.

That account is pretty unreliable. I’ve kind of accepted the worst so for me it can’t get much grimmer.

I am enjoying supporting the team this season and taking each game at a time. As much as getting beat by Wycombe yesterday wasn’t an enjoyable experience it really pales into insignificance given our overall situation. I just want it to be over now one way or the other.

Don`t we all, appears to have gone on forever, normality seems as far off as ever it was.

[Snowflake Royal]

9 games left. Then another 2 / 3 months max.

One way or another.

[tmesis]

And I don't really think liquidation makes sense either, it's definitely against Dai's financial interest.

It would mean he could sell the real estate assets without having to fund the club in any way.

Who's going to buy a studium and training ground with no sports club to pay rent to use it?

And please don't bring up Bearwood being sold for housing redevelopment. It's part of a historical park so housing will never be allowed.

Neither would have zero value without a club, and developers are happy to play the long game.

The thought of someone buying the club and the land for the purpose of charging rent is almost worse than the club folding, as is Dai carrying on, just to collect rent from a club reduced to the bare bones.

Don't forget that Dai has already liquidated two clubs, so he has form for this kind of thing. KSV Roeselare's stadium is still there, unused, so it's not like he seems he cares that much about getting good money for stuff.

Liquidation could also see the club sold as a package, with a new owner picking up the club, stadium and training ground, kind of like sticking a car for sale at an auction. What the status of the club would be after that process is less clear.

[WestYorksRoyal]

If we did get liquidated, at least Reading FC wouldn't be able to ruin my day any more. It's been pretty miserable for years, and the past 12 months have been exhausting. The constant anxiety of unknown bad news bombshells being around the corner.

It's mad that we're even discussing this. No disrespect to the likes of Bury and Macclesfield, but they were small clubs with <10k crowds and a history in the 3rd or 4th tier. We're a relatively recent PL club who had 15k yesterday. I think there is a bit of complacency that it simply won't happen to us, among the media and regulators too. Even Kieran Maguire said it was a 0.001% chance of ending in liquidation on the basis that we had too much going for us, and he's quite a skeptical person in these matters. But the chance is very real.

[windermereROYAL]

and the past 10 years have been exhausting.
.

Fixed it for you.

[tmesis]

Even Kieran Maguire said it was a 0.001% chance of ending in liquidation on the basis that we had too much going for us, and he's quite a skeptical person in these matters. But the chance is very real.

People expect clubs to be saved because that's nearly always what happens.

The big question mark for us is Dai, because little of what he does makes sense. The spending in his earlier years was insane, not just in the amounts paid out, but for his continued blind faith in people who seemed to just use him for their own financial gain.

And there's his track record of pulling the plug when he gets bored, as he seems to have become this season.

But then there's the financial and maybe legal issues he's facing back in China. How does that impact things?

As the EFL said, they've not had to deal with the situation of an owner who just doesn't seem to care any more.

I do think there's more chance of us being bought than not, but if there's no news by the end of the month, things get more worrying.

[Wycombe Royal]

It would mean he could sell the real estate assets without having to fund the club in any way.

Who's going to buy a studium and training ground with no sports club to pay rent to use it?

And please don't bring up Bearwood being sold for housing redevelopment. It's part of a historical park so housing will never be allowed.

Neither would have zero value without a club, and developers are happy to play the long game.

I never said it would have zero value. But there is no long game for developers on the training ground. It is historical land, part of the greater Bearwood Park. Go and read the planning application for the training ground. Its all in there.

The stadium area is another matter, but there won't be buyers queuing up for the training ground.

[Mid Sussex Royal]

James Earnshaw has just posted on Twitter that March is seen as a one off bad month for funding due to certain usual payments not being received but things should be ok for rest of season.

[Snowflake Royal]

What usual payments would there be that wouldn’t be paid, other than money from Dai?

Ticket sales aren't going to be a lot different. Transfer fee installments aren't going to unexpectedly fluctuate as Uke says. TV money?

[Mid Sussex Royal]

What usual payments would there be that wouldn’t be paid, other than money from Dai?

Ticket sales aren't going to be a lot different. Transfer fee installments aren't going to unexpectedly fluctuate as Uke says. TV money?

I've no idea, but Earnshaw has spoken to several people at the club...I'm guessing there may be the odd quarterly payment ?

[The Royal Forester]

I wouldn't be surprised to see Bearwood sold to a Chinese company, probably one of that Dai has a stake in. An "advanced payment" (just enough to keep the club ticking over until RFC is no more,) Dai or his cronies, then own the stadium and training ground, Illegal in this country, probably, but would Yongge care about that as he is sitting pretty, and smirking, in his homeland. Houses may not be able to be built on Bearwood, but could it become a Sporting Complex, with the space for many different sports to be held.

[WestYorksRoyal]

I wouldn't be surprised to see Bearwood sold to a Chinese company, probably one of that Dai has a stake in. An "advanced payment" (just enough to keep the club ticking over until RFC is no more,) Dai or his cronies, then own the stadium and training ground, Illegal in this country, probably, but would Yongge care about that as he is sitting pretty, and smirking, in his homeland. Houses may not be able to be built on Bearwood, but could it become a Sporting Complex, with the space for many different sports to be held.

Tbf, turning it into a sporting complex would be a sensible move by the club. It's far too big for us, so if we convert 50% of it into something that generates income that's great. But obviously I wouldn't want to see it happen in the context you outline.

[windermereROYAL]

£1m shortfall this month if sources are to be believed, we`re fucked.

[Mid Sussex Royal]

The funding gap this month is around £1m according to several sources on Twitter.

By my maths if we sell out the 3 home games on sale currently we'd get near-ish...

[WestYorksRoyal]

How is a deficit that big even possible? The Athletic reported in autumn that our monthly wage budget was c. £700k and that we before we got players like Ejaria, McIntyre and Holmes off it. There must be other creditor balances due.

No idea how they do this. Perhaps a push on tickets can squeeze out an extra £100k, get another £200k from SCL. It's near impossible to see a path to £1m. And if they do the early ST idea, potential buyers won't like seeing one of their big income streams used up now.

[Clyde1998]

I wouldn't be surprised to see Bearwood sold to a Chinese company, probably one of that Dai has a stake in. An "advanced payment" (just enough to keep the club ticking over until RFC is no more,) Dai or his cronies, then own the stadium and training ground, Illegal in this country, probably, but would Yongge care about that as he is sitting pretty, and smirking, in his homeland. Houses may not be able to be built on Bearwood, but could it become a Sporting Complex, with the space for many different sports to be held.

Tbf, turning it into a sporting complex would be a sensible move by the club. It's far too big for us, so if we convert 50% of it into something that generates income that's great. But obviously I wouldn't want to see it happen in the context you outline.

This. If you could have a facility capable of hosting National League-level football matches and Championship-level rugby matches, then you have the possibility of the Rams, Reading City, Woodley United and/or Wokingham & Emmbrook playing there for a small fee. You'd also have the possibility of hosting women's and youth matches there - not needing to open the Madejski Stadium up for less than 4,000 people.

Obviously not going to happen in the near future - at least as long as the club would be making the decision.

[Snowflake Royal]

How is a deficit that big even possible? The Athletic reported in autumn that our monthly wage budget was c. £700k and that we before we got players like Ejaria, McIntyre and Holmes off it. There must be other creditor balances due.

No idea how they do this. Perhaps a push on tickets can squeeze out an extra £100k, get another £200k from SCL. It's near impossible to see a path to £1m. And if they do the early ST idea, potential buyers won't like seeing one of their big income streams used up now.

I would have to guess someone has decided we're done and called in a loan early.

[Royals and Racers]

Could the PFA give us a loan ?

[Snowflake Royal]

Could the PFA give us a loan ?

Why would they?