EFL Statement: Mr Yongge Dai
In September 2023, the Reading FC owner Mr Yongge Dai was charged with misconduct after failing to comply with the order of an independent Disciplinary Commission which required him to deposit an amount equal to 125% of the Club’s forecast monthly wage bill in a designated bank account.
The matter was referred by the League to an independent Disciplinary Commission in accordance with its Regulations and at the hearing, which took place on 23 November 2023, the EFL put forward that Mr Dai should be disqualified from all football activity, including ownership and control, for a period of 12 months.
In its submissions, the EFL also made it clear that it did not feel a sporting sanction against the Club was appropriate in this case as this was direct action being taken against the owner.
On review of all the arguments, the independent Commission were ‘unimpressed’ by Mr Dai’s failure to provide detailed evidence as to the ongoing reasons for failure to pay and as to his future intentions but felt a disqualification would not achieve the immediate objective of sourcing the required funds for the deposit account.
Therefore, the Independent Commission has determined that Mr Dai be fined £20,000 with a further £50,000 suspended and to be activated on 12 January 2024 unless the required deposit is made in full. In addition, Mr Dai is required to maintain the deposit at the levels set out previously until, at the earliest, 31 August 2024.
It is clear that the Commission are critical of his handling of matters labelling it a ‘serious case ‘and ‘deliberate misconduct.’
It is hoped this latest financial sanction, and the threat of further monetary penalties will bring a resolution to the short-term issue of funding the deposit account, which in turn should provide some re-assurance to the management, staff, and players at the Club, who continue to act as outstanding ambassadors for Reading FC, despite the challenging circumstances.
The League will have no hesitation in bringing further charges against Mr Dai if he fails to comply with the Commission’s directive and is also ready to support the Club in quickly progressing a change of control at the Club once a purchaser has been identified.
The independent Disciplinary Commission’s Written Reasons can be viewed here.
Global Summit 2024