(Bloomberg) — American financier Rob Couhig is close to a deal to buy English soccer club Reading FC from Chinese businessman Dai Yongge, according to people familiar with the matter.
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Couhig leads a consortium in advanced negotiations to take over Reading, a club playing in the English third division, for around 30 million pounds ($38 million), according to the people, who asked not to be identified.
Under the terms discussed, the investor group will settle Reading’s existing debts to third-party creditors, the people said. An agreement could be reached within days, they added.
Couhig tried to reach an agreement before Reading’s first game of the season against Birmingham City FC last weekend, which he attended in person, one of the people said. But complexities in the negotiations, including who owns Reading’s stadium, have delayed progress on the deal, the person said.
In a July 26 post on X, the social media platform formerly known as Twitter, Couhig said he had taken out a subscription to Reading’s official TV channel. “Well that’s sorted. Purchased Royals TV package. Should be a good build-up to the season. Excited to see the boys in action,” he wrote.
Couhig declined to comment. A representative for Reading and a spokesman for Walker Morris LLP, Dai’s law firm, also declined to comment.
If a deal goes through, Couhig would be returning to a familiar part of England. The town of Reading is west of London and about 20 miles from High Wycombe, home of Wycombe Wanderers FC. Couhig is the former owner of that club, which plays in the same league as Reading. He sold his share in Wycombe Wanderers earlier this year.
Founded more than 150 years ago, Reading FC has struggled financially in recent years. Renhe Sports Management Co., the club’s holding company, reported a loss of £21 million for the year ending June 30, 2022, according to its latest accounts.
Chiron Sports Group, a capital and advisory firm co-founded by Leo Rifkind, provided financial support to Reading last season, the people said. Rifkind could join Reading’s board to help with the transition after a potential Couhig acquisition, they said.
Dai took over Reading in 2017. Under his leadership, the club was deducted a total of 18 points for breaches of football’s financial rules, contributing to its relegation to the third tier of English football.
Chinese investors have abandoned their bets on European football. This year, Lai Guochuan agreed to sell control of English club West Bromwich Albion FC, while in Italy, Oaktree Capital Management took ownership of Inter Milan after its Chinese owner, Suning Holding Group Co., defaulted on a loan.
– With support from Michael Hytha.
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