From Record-Breaking Heights to Financial Crisis: The Turbulent History of Reading Football Club
In short: Founded in 1871, Reading Football Club has evolved from a local team into a professional side with a storied, often chaotic history. Known as The Royals, the club has experienced record-breaking league dominance, top-flight Premier League appearances, and a series of severe financial crises that threatened its very existence.
Established on 25 December 1871, Reading spent over a century at Elm Park before moving to the Madejski Stadium in 1998. The club’s trajectory shifted dramatically in the 21st century. In the 2005–06 season, Reading set a professional league record by securing 106 points, propelling them into the Premier League for the first time. Their debut top-flight campaign in 2006–07 was a success, finishing eighth, but the club struggled to maintain this momentum, eventually becoming a yo-yo team between the Championship and the Premier League.
The club's modern era has been defined by extreme financial instability under the ownership of Dai Yongge, who acquired the club in 2017. By 2021, the club was spending 234% of its revenue on player wages, leading to massive pre-tax losses of £146m over five years. These breaches of profitability and sustainability rules resulted in multiple points deductions across consecutive seasons, culminating in relegation from the Championship in 2023 and ongoing protests from fans under the 'Sell Before We Dai' campaign.
Governance issues reached a breaking point in 2025, when the EFL disqualified Dai under its Owners' and Directors' Test, mandating a sale. Following a series of collapsed takeover bids, Redwood Holdings Limited finally completed its acquisition of the club in May 2025. This transition marked the end of a tumultuous period that saw the club face transfer embargoes, late financial filings, and the withdrawal of its women's team from the Women's Championship due to financial constraints.
Despite these challenges, the club remains a significant cultural institution in Berkshire. From its early days as 'The Biscuitmen' to its modern identity, Reading has balanced moments of sporting glory—such as reaching the FA Cup semi-finals in 1927 and 2015—with the harsh realities of modern football economics. The club's recent history serves as a stark case study in the risks of unsustainable financial management in the professional game.
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Sources
- Summary by Intellect · source: Reading F.C.
- Also: Wikidata — Reading F.C. · CC0
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