Dai Yongge faces £10.3m lawsuit over failed Reading FC takeover

In recent events concerning Reading Football Club, Rob Couhig has initiated legal proceedings against Dai Yongge's business, Renhe Sports Management, in the High Court, seeking a total of £10.3 million in damages. This lawsuit follows the collapse of Couhig's £25 million takeover bid for the club in September 2024, during which he alleges that he invested £5 million before the deal was canceled. Following the breakdown of negotiations, Couhig is also pursuing an additional claim for £800,000 in costs and £9.5 million in lost profits, indicating the financial strain placed on him by the failed acquisition attempts. Couhig's frustrations are further exacerbated by a lack of communication from Reading's management about his ongoing interest in purchasing the club. Reading FC fans have voiced their discontent regarding Yongge’s ownership, which they believe has led to a significant decline in the club’s competitiveness, with the team dropping from being Premier League contenders to struggling near the relegation zone. Since Yongge's tenure began in 2017, the club has faced various penalties, including an 18-point deduction, six points of which were incurred last season due to financial misconduct involving late wage payments and tax obligations. The 'Sell before we Dai' campaign, spearheaded by the fanbase, illustrates the urgency they feel about changing ownership in hopes of restoring the club’s former glory. Amidst these tensions, local figure Smee attempted to put together a consortium to submit a competitive bid earlier this week, yet his proposal was swiftly rejected by the club. Couhig, desiring to resolve ownership matters before the January transfer window, expressed his frustration over the lack of communication from current management. He emphasized that his intention was never to act as a financier but rather to take hold of the club and facilitate its growth. Couhig has made clear that despite pursuing damages, his priority is securing a deal to take over Reading FC, underscoring both his commitment to the club's future and the fanbase's desperate hopes for revitalization. Nevertheless, the financial turmoil surrounding the club raises questions about its sustainability moving forward. Fans worry that without a change in ownership, Reading may continue spiraling downward, potentially facing relegation from League One to League Two. Couhig's claim represents not only a financial dispute but also a reflection of the club's strained relations with potential investors, which could hinder efforts to stabilize and improve its position in the football hierarchy.