Only if Reading went into administration would British businessman Roger Smee be able to finalise an agreement to take up the League One team.
This is in accordance with a Reading Chronicle update, which provided clarification following a rumour that Smee could be able to save the club.
The club is at “crisis point” in terms of its cash flow, according to City AM, and Smee was thinking about making a “last-ditch” effort to salvage the Royals.
This sparked a lot of social media worry because the Berkshire team is already known to be in a quite perilous financial situation as a result of owner Dai Yongge’s failure to adequately fund the team, which could endanger the development the team is making on the pitch.
Over a year has passed since the ownership drama began, with multiple parties attempting and failing to finalise a deal for the League One team.
Last year, Genevra Associates was strongly linked to the Royals, but they ultimately failed to close a deal.
Prior to Rob Couhig establishing himself as the leading candidate to take over the club, the club had entered a period of exclusivity with Chiron Sports Group in March of this year.
With the American even attending games against West Ham U21s and Wigan Athletic at the Select Car Leasing Stadium, it appeared like Couhig would seal a deal in August.
However, that £25 million agreement fell through, and the club’s current owner, Dai, returned the money Couhig had loaned it when he attempted to buy it.
It remains to be seen if they can succeed where others have failed at this time of exclusivity with a different group of potential purchasers.
Roger Smee can only finish the Reading FC takeover under certain conditions.
According to the Reading Chronicle, Smee has a sincere interest in the club, but because of its current price, he could only buy it from the administration.
Prior to selling up to Sir John Madejski in 1990, the 76-year-old saved the team from a possible merger with Oxford United in the 1980s and later rose to the position of chairman.
Whether Smee is required is still up in the air. According to the Reading Chronicle, the administration is not now a short-term threat, and the party in exclusivity is still engaged in negotiations.
Reading FC’s administration is probably going to be a nightmare.
For the players on the pitch, administration would be bad because it would deduct 12 points from their total.
Additionally, it will make them more likely to be relegated, and since the team doesn’t have a strong squad, they won’t want to be involved in a relegation battle.
Because players would most likely need to be sold to raise money for administration, it would also be a nightmare off the pitch.
Additionally, since multiple firms would own diverse assets, this won’t be a straightforward administrative time.
For this reason, before admin becomes a serious prospect, a transaction that includes the stadium, training facility, and club shares must be made as a single unit.
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