News and Views
Spare Cash From 10 Million Pound Loan
24 January 2017
By Hob Nob Anyone?
Jaap Stam is expected to have spare funds ahead of the closure of the transfer window after only part of a 10.4 million pound loan from Chinese pair Xiu Li Dai and Yongge Dai was used to complete the transfer of Tiago Ilori from Liverpool. Although Ilori's transfer fee was undisclosed and will include hefty wages, the total fees should leave spare cash from the advance payment made by the Dais who are still looking to take control of Reading Football Club. Despite the huge uncertainty that continues to hang around the club, Stam is still likely to be allowed at least one major signing as he looks to continue what would be a vital promotion push.
The Ilori deal took much longer than expected to complete while the details of the loan, made via Dai's Hong Kong based Golden Shine International company, were agreed and the money made available. The signing of Ilori was immediately followed by Gareth McCleary putting pen to paper on a new contract to keep him at the club. The up front investment seems aimed at maintaining a promotion push while all parties wait for resolution on the overall club ownership. With the club already in debt, promotion to the Premier League is seen as an instant fix.
The Chinese pair are still hopeful of completing the purchase of the club from our current Thai owners - but checks around the potential new owners continue. There is still no guarantee the takeover will complete, after it looked dead and buried only a few weeks ago - but that was the same time in which loan was being negotiated. Should the takeover fail to complete the club will have additional debts in a complex financial picture with the new loan secured against 24.66% of the Thai owned RFC Prop Co Limited.
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