OFFISHAL CONFRIMATION of the CONFIMRED

[Royal Rother]

Indeed. And the debt previously owed to Dai no longer sits on the club's Balance Sheet, although the presumed write off of that debt and where it now sits, would be included in Disclosures no doubt.

[Snowflake Royal]

So why does the debt still exist.

If Dai was owed 90 mill. And that debt was on the club. And couhig has just bought the club for 25 million. And dai is getting nothing more. Why does the club owe couhig the rest of the money?. That debt to dai no longer exists. Dai has written it off.

I think you're conflating all debt into one.

The club owed Dai £xm
The club owed third parties £ym

The majority of our debt was to Dai, hence why we were never in real danger of creditors winding us up and going into administration, it was sale or liquidation.

The club no longer owes Dai anything.
The club will still owe third parties £ym
The club now owes Couhig the sale price.

This is how I understood it, too. The £90m on the books is a bit of a red herring, because it's effectively the value of the club - which is now only £25m, given that's what Couhig paid for it.

Couhig said in the interview with Craig that he's close to settling some of the debts the club had to vendors. When we get the next set of accounts, that £90m should be closer to £25m, plus any other debts the club has that Couhig hasn't managed to settle.

At least I think that's right...

Might show in next set, but they'll be for last season, so only at the end. Might have to wait for next season's to get the full picture

[Snowflake Royal]

The club shouldn't owe Couhig the Sale Price.

He bought the shares from Dai for £25m. Depending on his actions and the success of the club the value of those shares will increase in value (or not) but buying those shares should not have created a debt to Couhig.

It seems quite common to load the sale price onto the club... and it's money that Couhig will need back before he is into profit, but yeah, I guess it may not be actual listed debt

[rabidbee]

I assumed that giving money as a loan was to comply with FFP rules, but I can't see it in the regulations (although maybe I just don't understand the language). So, presumably, giving money as a loan to the club makes it easier to recoup it if the club becomes very profitable - perhaps it's more tax efficient than dividends? More realistically, if the club went all the way up to the PL, presumably Couhig et al could repay themselves the loan in the form of shares, and then recoup the value of the loan from the purchase money for the club. Whilst this is only future potential profit/increased value, it sits in a holding company as a loan. I guess the other question is whether the club is paying any interest on the loan to Couhig et al.

[Greatwesternline]

I assumed that giving money as a load was to comply with FFP rules, but I can't see it in the regulations (although maybe I just don't understand the language). So, presumably, giving money as a loan to the club makes it easier to recoup it if the club becomes very profitable - perhaps it's more tax efficient than dividends? More realistically, if the club went all the way up to the PL, presumably Couhig et al could repay themselves the loan in the form of shares, and then recoup the value of the loan from the purchase money for the club. Whilst this is only future potential profit/increased value, it sits in a holding company as a loan. I guess the other question is whether the club is paying any interest on the loan to Couhig et al.

Yes.

Owners lend money because they can get that money back out again tax free by repaying the club repaying the loan. Gifting it is all nice and well but not in an owners financial interests, and loans can always be written off in the future if desired, thus giving an owner more optionality in the future.

[Royals and Racers]

The City have just published a Reading FC registration of a charge document which was done on Monday 19th.

[The Royal Forester]

The City have just published a Reading FC registration of a charge document which was done on Monday 19th.

Are you trying to confuse me even more, if so it has worked.

[MouldyRoyal]

It's likely just intercompany debt at this point, i.e. debt that the Club legal entity owns to another member of the Redwood group.

External debt is a much more interesting thing to find out.

Sadly much of this will be invisible until we get the accounts covering this period in March next year.

[El Diablo]

It's likely just intercompany debt at this point, i.e. debt that the Club legal entity owns to another member of the Redwood group.

External debt is a much more interesting thing to find out.

Sadly much of this will be invisible until we get the accounts covering this period in March next year.

Yup. Bearwood is the single biggest Interco debt I would imagine - - on Bearwoods Balance sheet that sits just north of £39m .

Asset is valued @ £41m

Bearwoods running costs on the last filed are @£875k -

[Elm Park Kid]

Say that you owned a small company. You lent that company £100k from your own money in order to try and grow it. It didn't work out and now you're selling it on

You know that you're never getting that £100k back. No one in their right mind is going to buy your company from you whilst it has a £100k liability to someone else. So, the simplest thing would be that when you sell you would agree to just write off the debt.

However, for tax reasons, the person buying your company might actually want to keep the debt on the books, but change it so it's now owed to themselves. That way if the company does well in the future they can simply pay themselves back the debt and that wouldn't class as income for tax reasons.

So, the deal you agree to when you sell the company is that you also sell your debt at the same time.

From what others have said, I assume that's what has happened here. Dai sold both Reading FC and the debt that he is owed by Reading FC to Couhig. So, technically the club owes Couhig £90m - but it's all still just a tax thing. It doesn't make any real world difference to the club whether it owes the owner £1, £1m or £100m.

[Linden Jones' Tash]

Say that you owned a small company. You lent that company £100k from your own money in order to try and grow it. It didn't work out and now you're selling it on

You know that you're never getting that £100k back. No one in their right mind is going to buy your company from you whilst it has a £100k liability to someone else. So, the simplest thing would be that when you sell you would agree to just write off the debt.

However, for tax reasons, the person buying your company might actually want to keep the debt on the books, but change it so it's now owed to themselves. That way if the company does well in the future they can simply pay themselves back the debt and that wouldn't class as income for tax reasons.

So, the deal you agree to when you sell the company is that you also sell your debt at the same time.

From what others have said, I assume that's what has happened here. Dai sold both Reading FC and the debt that he is owed by Reading FC to Couhig. So, technically the club owes Couhig £90m - but it's all still just a tax thing. It doesn't make any real world difference to the club whether it owes the owner £1, £1m or £100m.

Thank you - I appreciate the explanation.

The term 'debt' was causing me confusion - but your explanation has clarified things for me.

[MartinRdg]

RC's open letter to fans https://www.readingfc.co.uk/news/2025/may/22/our-club-our-future-2025-26-season-tickets-on-sale-now/
Open day invite for people who renew their season ticket - prices frozen until 06/06/2025

[Snowflake Royal]

Say that you owned a small company. You lent that company £100k from your own money in order to try and grow it. It didn't work out and now you're selling it on

You know that you're never getting that £100k back. No one in their right mind is going to buy your company from you whilst it has a £100k liability to someone else. So, the simplest thing would be that when you sell you would agree to just write off the debt.

However, for tax reasons, the person buying your company might actually want to keep the debt on the books, but change it so it's now owed to themselves. That way if the company does well in the future they can simply pay themselves back the debt and that wouldn't class as income for tax reasons.

So, the deal you agree to when you sell the company is that you also sell your debt at the same time.

From what others have said, I assume that's what has happened here. Dai sold both Reading FC and the debt that he is owed by Reading FC to Couhig. So, technically the club owes Couhig £90m - but it's all still just a tax thing. It doesn't make any real world difference to the club whether it owes the owner £1, £1m or £100m.

Thanks. Bloody tax dodging ffs.

[From Despair To Where?]

Bearwood open day is a cracking bit of PR there. Will cost the club relatively little but it's something I'd imagine a lot of fans would love to do.

[Sutekh]

Bearwood open day is a cracking bit of PR there. Will cost the club relatively little but it's something I'd imagine a lot of fans would love to do.

Is it bring a packed lunch

[katweslowski]

Bearwood open day is a cracking bit of PR there. Will cost the club relatively little but it's something I'd imagine a lot of fans would love to do.

Agree. I've cycled past a few times but never been in. I'm definitely going to go as I'd like to see the facilities and why everyone says how great it is, even players who have come from Premier League teams.

[Brogue]

Bearwood open day is a cracking bit of PR there. Will cost the club relatively little but it's something I'd imagine a lot of fans would love to do.

not sure how they will accommodate 7k cars turning up... but i agree it's great to finally let the fans in and have a look round

[Hendo]

Bearwood open day is a cracking bit of PR there. Will cost the club relatively little but it's something I'd imagine a lot of fans would love to do.

not sure how they will accommodate 7k cars turning up... but i agree it's great to finally let the fans in and have a look round

No doubt it'll be strategically timed during the middle of the morning on a workday.

[katweslowski]

Bearwood open day is a cracking bit of PR there. Will cost the club relatively little but it's something I'd imagine a lot of fans would love to do.

not sure how they will accommodate 7k cars turning up... but i agree it's great to finally let the fans in and have a look round

No doubt it'll be strategically timed during the middle of the morning on a workday.

Probably say to go to the ground or osmething and then bus people over? It's only 6 miles. This has the added advantage of people flooding the club shop too.

[Greatwesternline]

Bearwood open day is a cracking bit of PR there. Will cost the club relatively little but it's something I'd imagine a lot of fans would love to do.

Cost?

7k visitors spread throughout the day, charge them for parking, sell them some burgers, sell them some new kits for next season, sell them some booze.

You can make 70k sales in one day if you persuade each person to part with £10!