(Bloomberg) -- American financier Rob Couhig is nearing a deal to buy English football club Reading FC from Chinese businessman Dai Yongge, according to people familiar with the matter.
Couhig is leading a consortium that’s in advanced talks to acquire Reading, which competes in the third tier of English football, for about £30 million ($38 million), according to the people, who asked not to be identified discussing confidential information.
Under terms being discussed, the investor group will pay off Reading’s existing debt with third-party creditors, the people said. An agreement could be reached within days, they added.
Couhig had aimed to reach a deal before Reading’s first match of the new season against Birmingham City FC last weekend, which he would then have attended in person, one of the people said. But complexities in the negotiations, including who owns Reading’s stadium, have delayed the deal’s progress, the person said.
In a July 26 post on X, the social media platform formerly known as Twitter, Couhig said he had signed up for a subscription to Reading’s official TV channel. “Well, that’s sorted. Royals TV package purchased. Should be quality preparation for the season. Anxious to see the boys in action,” he wrote.
Couhig declined to comment. A representative for Reading and a spokesperson for Walker Morris LLP, Dai’s law firm, also declined to comment.
If a deal is struck, Couhig would return to a familiar part of England. The town of Reading lies just to the west of London and about 20 miles from High Wycombe, the home of Wycombe Wanderers FC. Couhig is the previous owner of that club, which competes in the same league as Reading. He sold his stake 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 holding company for the club, reported a loss of £21 million for the financial year ended June 30, 2022, its latest accounts show.
Chiron Sports Group, a capital and advisory firm co-founded by Leo Rifkind, provided financing to Reading during last season, the people said. Rifkind could join the board of Reading following any takeover by Couhig to help with the transition, they said.
Dai acquired Reading in 2017. Under his ownership, the club has been docked a total of 18 points for breaking football’s financial rules, contributing to its demotion into the third tier of English football.
Chinese investors have been exiting 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. — failed to repay a loan.
--With assistance from Michael Hytha.
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