Due to the poor financial situation at Reading, the staff has had to adjust their training plans in order to avoid the expense of undersoil heating. The club, which is owned by Chinese businessman Dai Yongge, has taken several extreme measures to reduce costs, including laying off 19 employees and owing approximately £4 million to suppliers.
Staff and former employees talk of “firefighting” on a daily basis as the club fights a series of off-field problems. The English Football League has called for Dai to fund or sell the club after displaying a “clear disregard” for his duties.
The team has been practicing on one specific field with undersoil heating on Thursday and an under-21s game was played on the same field on Monday. However, staff has been advised to limit the use of the field. In the past few weeks, the manager, Rubén Sellés, has had to make changes to the training schedule or use the gym instead of the heated field in order to save on costs. The undersoil heating is only turned on during training sessions and then turned off immediately after. The team has the option to train on other fields, but due to recent freezing temperatures, they have had to wait until the fields have thawed before training.
Reading said payments for the undersoil heating were taken automatically upon use and that it had been general practice for a while to activate it only when essential. They acknowledged that the club’s financial troubles meant it was imperative they were savvy with how much they use it.
Despite the cold weather, employees at the club’s impressive £50 million Bearwood training facility, which was opened by Dai in 2019, have been seen wearing jackets and coats inside the main building due to a lack of functioning heating on the upper floors. The club has stated that this is due to an ongoing maintenance issue, but some employees speculate that it is to cut costs. The club has recently made 19 staff members redundant, including assistant manager Andrew Sparkes and head of player development Eddie Niedzwiecki. Many of these job losses have occurred within the academy, which is at risk of losing its category one status. There are also concerns that more first-team staff may also be at risk of losing their jobs. The club has stated that they have not identified any additional roles as being at risk.
Several suppliers have become frustrated. The company StatsPerform, which supplies Opta data, has suspended its account with the club. Another supplier, the catering firm Levy, has withdrawn from the training ground but is still providing services at the stadium. As a result, medical staff are responsible for finding meals for players. In 2017, Dai and his sister Dai Xiu Li took over control of the club. At that time, the club was close to being promoted to the Premier League after winning the Championship playoff final. It is estimated that Dai has invested over £250m in hopes of reaching the top flight. However, the club is now resorting to drastic measures, described as “saving pennies” by an insider.
The meal served after the Reading Women’s FA Cup match against Wolves last Sunday at Aldershot has caused sickness among players from both teams. This has resulted in Wolves having to postpone a game against West Brom due to a significant number of affected players on their team.
In November, the English Football League (EFL) attempted to remove Dai from his position as owner due to a financial violation. However, an impartial panel determined that this would not resolve Reading’s issues. Instead, Dai was fined £20,000 for not complying with the EFL’s requirement to deposit 125% of the monthly wage bill into a designated account. Last Friday, a previously suspended £50,000 fine was imposed after he once again failed to meet these demands. It is believed that Dai has not paid either of these fines. Since November 2021, Reading has had 16 points deducted for financial violations, including the late payment of wages. The club has faced transfer restrictions for the past two years due to their failure to pay HMRC on time.
The embattled CEO, Dayong Pang, has approved the transfer of Tom Holmes and Nelson Abbey, both to Luton, although it is uncertain if the latter will actually join. Other players, including Tyler Bindon and Charlie Savage, may also be sold. Savage has only made 14 appearances in the league because playing one more game would result in a £2,000 increase in his monthly salary. Before Christmas, the club ended their contract with Ovie Ejaria, who had signed a lucrative four-year deal after joining from Liverpool in 2020, saving the club approximately £200,000.
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There are reportedly three or four potential buyers for Reading who have signed non-disclosure agreements, but there are worries within the club that these buyers may back out due to the current financial difficulties. Reading, who will be playing against Wigan on Saturday, currently sit at 21st place in League One and are at risk of being relegated for a second year in a row. The team no longer regularly stays overnight, but they will have one on Friday. A member of the staff stated, “We cannot progress as a club unless we have new owners.”
On this weekend, the Football Supporters’ Association is urging teams to demonstrate unity with Reading supporters by observing a minute of applause in the 16th minute. This is the same time when Reading fans stormed the field during their match against Port Vale last Saturday, which resulted in the game being called off. Exeter City, who are in direct competition with Reading, have already committed to participating in this gesture. There is a possibility that Reading may receive a penalty of suspended points due to the pitch invasion, similar to what Blackpool faced in 2015 as a form of protest against their owners at the time.
The EFL has acknowledged that Dai is not capable of managing the club and has limited ability to remove him from his position. The EFL board recently discussed the possibility of having a controlling share in all 72 clubs, but chairman Rick Parry recognized that this could cause significant issues. Parry stated that due to company law, the EFL is unable to compel the sale of the club or take ownership of shares. Unfortunately, the EFL’s authority is restricted to taking over the club, which is not an ideal solution.
On Wednesday, Reading issued a statement announcing that Mr. Dai has agreed to sell the club as soon as possible. Nigel Howe, the club’s previous CEO, is overseeing the sale and stated that Dai has sought the assistance of lawyers in the process of disposing of the club.
Source: theguardian.com
