Supporters of Reading FC have been vocal in their criticism of owner Dai Yongge.
The owner of Reading FC, Dai Yongge, has incurred a £20,000 penalty for not transferring the requisite wages for the League One team.
In September, the English Football League accused Dai of wrongdoing when he failed to allocate funds sufficient to cover 125% of the predicted monthly wage expenditure.
Although the EFL proposed a one-year prohibition from all football-related activities, an independent disciplinary body decided not to implement this recommendation.
Nonetheless, the body labeled Dai’s behavior as “intentional misconduct”.
Additionally, a conditional fine of £50,000, set by the body, is on hold until 12 January 2024. This fine will be activated if Dai doesn’t fully meet the deposit requirement.
Dai, a Chinese entrepreneur currently seeking to sell the Berkshire-based club, must also ensure the deposit amounts set by the EFL are upheld at least until the end of August.
The EFL expressed its belief that penalizing Reading with another sporting sanction was not necessary in this instance, as they were directly targeting the owner.
Already this season, Reading has faced a 10-point reduction due to additional financial irregularities.
The independent body expressed dissatisfaction with Dai’s lack of comprehensive justification for the non-payment, but believed that barring him would not contribute to acquiring the needed funds to cover the club’s financial obligations.
“The EFL hopes that this current financial penalty, along with the prospect of more fines, will lead to a swift resolution in funding the deposit account. This should, in turn, offer some reassurance to the management, staff, and players of Reading FC, who have continued to represent the club excellently under these tough conditions,” stated an EFL release.
“The League is prepared to impose additional charges on Dai Yongge if he does not adhere to the commission’s orders. The EFL is also willing to assist the club in expeditiously transitioning to new ownership once a buyer is found.”
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Frequently Asked Questions (FAQs) about Dai Yongge Fine
Why was Reading FC owner Dai Yongge fined £20,000?
Dai Yongge was fined for failing to deposit the necessary wages at the League One club, not meeting the requirement to cover 125% of the forecast monthly wage bill as mandated by the English Football League.
What could have been an alternative penalty for Dai Yongge suggested by the EFL?
The English Football League recommended banning Dai Yongge from all football-related activities for 12 months, but this was not enforced by the independent disciplinary commission.
What are the consequences if Dai Yongge fails to meet the EFL’s requirements again?
If Dai Yongge fails to deposit the required amount in full, an additional £50,000 fine, currently suspended until 12 January 2024, will be triggered.
How is Reading FC’s performance affected by these financial issues?
Reading FC has already faced a deduction of 10 points this season due to further financial breaches, impacting their standing in the league.
What does the EFL hope to achieve with these sanctions?
The EFL aims to ensure financial stability and compliance at Reading FC, and is prepared to support the club in transitioning to new ownership if Dai Yongge does not adhere to the commission’s orders.
More about Dai Yongge Fine
- Reading FC Official Website
- English Football League (EFL) News
- BBC Radio Berkshire Reading FC Podcast
- Financial Regulations in English Football
- League One Standings and News
- Guide to Football Club Ownership and Management
5 comments
Typical EFL, always after the fines but what about long term solutions for the clubs? They need better support, not just penalties
Wow, tough times for Reading FC huh? feel for the fans, they deserve better than this… mismanagement at its finest
Dai Yongge really needs to sort things out, £20k fine is just the start, what about the club’s future? worried about where we’re headed
This is why financial fair play is important, clubs can’t just be left to flounder under poor ownership. Hope Reading bounces back soon
as a lifelong Royals fan, this is heartbreaking, but not surprising. Need new ownership to turn things around, fast!