Football finance expert Kieran Maguire has provided an update regarding the potential takeover of Reading Football Club.
The Royals signed exclusivity with an unnamed party last month as owner Dai Yongge looks set to sell the club.
With the full process expected to take up to two months, fans have had to wait patiently for updates.
Speaking on BBC Radio Berkshire on Monday morning, the co-host of the Price of football podcast said: “The ownership and directors test has two elements. First of all, you have to evidence you don’t have any outstanding criminal convictions. That should be relatively easy to pass.
“The second test is more complex. First of all, you have to be able to show you’ve not only got the money to buy Reading FC, but also to run it for the next two years.
“Then you have to show where that money comes from because football is littered with nefarious people who have bought football clubs, sometimes their backgrounds can be a little bit uncomfortable.
“If those tests are both satisfied then the EFL will sign off on the deal.”
Dai Yongge has been in charge of Reading since 2017 and in that time the club has had a total of 18 points deducted as well as numerous transfer embargoes which has caused complications.
Maguire continued: “There is nothing under the rules, and I think this is an area where we do need to address the issue, to stop an owner deciding to stop funding the club.
“Tomorrow there’s going to be a hearing in Parliament in regards to the second reading of the football governance bill so it looks like the government will introduce slightly more stringent tests.
“Having said that, I’m not sure those tests would address the position Reading have found themselves in.
“I absolutely sympathise with the Reading fans. If an owner puts money in, in the case of Dai Yongge money was being put in for three years. Reading were paying twice as much money on wages or more than the club was generating and were being funded by Dai Yongge.
“But subsequently he has decided for whatever reason, and we can’t see the 2023 accounts because he’s using a loophole to not disclose them. So we can’t see why he’s changed his mind.”
Maguire also expanded on what he expects to see from new ownership at the club.
He continued: “I think it’s up to them to change the culture at the club and I’d encourage them to engage with the fanbase.
“You want to see a commitment to investment and that investment will come in the form of infrastructure and most of all what’s going on, on the pitch.
“Then things can look more positive and there’s no reason why Reading can’t be in contention for promotion and the play-offs next season.”
