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The English Football League said Reading’s owner Dai Jonge must either “provide sufficient funds to the club” or “immediately arrange a sale”.
The Chinese businessman was fined a further £50,000 for failing to meet financial deadlines over wages.
royals fans forced to abandon Saturday’s League One game against Port Vale, where they protested against Dye’s ownership.
The EFL has announced that it will discuss pitch incursions at a board meeting later this week.
The EFL said: “It has become increasingly clear in recent months that Mr. Dai Jonge is neither in a position nor has the incentive to financially support the club as he did following the change in management in 2017.” said.
“The league will now consider all options available to it under the regulations and will not hesitate to pursue further charges against Mr. Dye.
“In the meantime, and for the future of Reading FC, its staff, supporters and local community, we urge Mr Dye to either fully fund the club or transfer a majority stake to suitable new owners. We urge you to make urgent arrangements for the sale so that we can move forward with renewed optimism.”
Mr Dye’s latest fine, which brings his total to £80,000, was imposed after he missed last Friday’s deadline to deposit 125% of staff salaries into registered accounts. Mr. Dai has now been in default for nearly four months.
When I was Dai He was fined £20,000 last month. The EFL had recommended that the player be suspended from all football activities for 12 months, but an independent disciplinary committee opposed the move.
The EFL said: “His continued failures mean the club’s hard-working staff will once again not have peace of mind about being paid their wages and shows a clear disregard for his duties as the club’s manager. “I have,” he added.
The league said it would meet with Royals supporter groups on Monday and Tuesday and reiterated its desire to work with Dye and potential buyers to “bring an end to this difficult time for all parties.”
The EFL described Saturday’s pitch invasion as “regrettable” and “demonstrated the impact the current situation is having on everyone associated with the club”, but added that trespassing on the field was a criminal offence.
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