Until recently many of us may have thought Dai Yonnge was a film franchise or a Welsh rugby legend, but if you live in Reading today, it may be the most uttered name in the town. And a man who seems to have fallen foul of the Chinese regime.

As current owner of Reading FC, Dai Yongge, a Chinese businessman. He acquired the club in 2017 with his sister, Dai Xiu Li, through their company, Renhe Sports Management Co Ltd. They currently own 75% of the club, with the remaining 25% owned by Narin Niruttinanon. So who are these owners, and what is going wrong with their stewardship at Reading FC ?

Narin Niruttinanon is a Thai businessman who is the chairman of Thailand's largest real estate developer, Pruksa Real Estate. He was born in Bangkok, Thailand, in 1958 and graduated from Chulalongkorn University with a degree in business administration. After graduating, he worked for several companies before joining Pruksa Real Estate in 1984. Niruttinanon became chairman of Pruksa Real Estate in 1994. Under his leadership, the company has grown to become Thailand's largest real estate developer. Pruksa Real Estate is also listed on the Stock Exchange of Thailand.

In 2014, Niruttinanon purchased a 50% stake in Reading Football Club. He became the majority shareholder of the club in 2017, when he purchased the remaining 50% stake, before selling part of his stake to Chinese businessman Dai Yongge and his sister.

In 2017, Dai Yongge and Dai Xiu Li acquired a 75% stake in Reading FC. The pair have stated that their ambition for the club is to return it to the Premier League, but he has recently struggled more and more with the onerous responsibilities of owning an English Football League club as he faces challenges with his Chinese business.

Reading FC have been in financial trouble for several years. In 2018, the club recorded a loss of £38.7m, and in 2019, the loss was £55.9m. The club's debt also increased significantly, from £20m in 2018 to £41m in 2019.

There are a number of factors that have contributed to Reading's financial problems. One factor is the club's high wage bill. Reading's wages-to-turnover ratio was 103% in 2018-19, which is significantly higher than the average for EFL clubs (75%).

Dai Yongge (戴永革) is a Chinese businessman and entrepreneur, born in 1968. As Dings will know, he is a relatively low-profile figure, and has rarely given interviews or speaks to the media. Dai made his fortune in the real estate and construction industry. In the early 1990s, he co-founded Renhe Commercial Holdings with his sister, Dai Xiu Li. The company specialized in converting former Chinese bomb shelters into shopping malls. In 2008, Renhe Commercial Holdings was listed on the Hong Kong Stock Exchange. The company's valuation at the time, along with its subsidiaries, was £1.06 billion. As of December 31, 2021, the Company has 10 underground shopping malls in operation in 7 cities, including Qiqihar, Harbin, Mudanjiang, Shenyang, Shouguang, Guiyang, and Hangzhou.

Renhe's underground shopping malls are typically located in densely populated urban areas and offer a wide range of products and services, including groceries, fresh produce, clothing, footwear, electronics, and household goods. The Company's malls are also home to a variety of restaurants and cafes. The malls are still owned by the Chinese government, so are leased, and therefore depend on good relations with the government for ongoing success.

Renhe's business model is based on leasing space to tenants in its underground shopping malls. The Company generates revenue from rental income, management fees, and advertising revenue.

In recent years, Renhe has been facing a number of challenges, including:

  • Increased competition from online retailers
  • A slowdown in the Chinese economy
  • Rising costs

However, reports in dissident Chinese online websites seem to point to deeper shenanigans – as in many totalitarian states, things in China are never quite what they seem and it has been postulated that Dai was always a frontman for the powerful Zeng family. These reports as totally unverified, but you can read the details in the article link.

In other words, Dai has much more on his plate than a football club in England.

There are, of course, other factors that have contributed to the recent decline, including the club's failure to win promotion to the Premier League. Reading have been relegated from the Premier League twice in the last six years, and they have not finished in the top six of the Championship since 2016-17. This has meant that the club has lost out on a significant amount of revenue from television rights and prize money.

The COVID-19 pandemic has also had a negative impact on Reading's finances. The club was forced to play its home matches behind closed doors for most of the 2020-21 and 2021-22 seasons, which resulted in a significant loss of gate revenue.

In December 2021, Reading were deducted six points by the EFL for breaching financial regulations. The club was found to have overspent on transfer fees and wages in 2018-19.

In May 2023, Reading were further deducted three points for failing to deposit wages. The club was found to have failed to pay its players on time in March 2023 and this threat, along with unpaid bills to HMRC, presently hang over the club.