Ex Newcastle United owner Mike Ashley set for huge rescue challenge as ‘frontrunner’ for Reading takeover

Former Newcastle United owner Mike Ashley is poised to make a return to the world of football by completing the takeover of struggling League One side Reading.

The Royals continue to battle financial woes having been relegated from the Championship last season after a points deduction. Supporters have demanded owner Dai Yongge sell up before further damage can happen with Ashley's Frasers Group one of the parties believed to be interested in a takeover mission.

Up to three buyers are said to be ready to complete a deal for Reading and news of a takeover could move fast with another HMRC tax bill going unpaid and staff due to be paid today, on Tuesday, October 31. Here's what we know so far.

What is the current financial situation at Reading?

Reading are in serious financial difficulties under owner Dai Yongge. The club has been deducted 16 points in less than two years for numerous financial breaches, which ultimately led to their relegation from the Championship last season.

Four of those points have been deducted this season after Reading failed to pay players on time, as well as not paying an HMRC tax bill. It has resulted in the club sitting rock bottom of the third tier after 14 matches this term.

Reading supporters held a huge demonstration to show anger at Yongge before and during the league meeting with Portsmouth this weekend, orchestrated by the Sell Before We Dai group who are urging the owner to sell the former Premier League side.

Former Newcastle United owner Mike Ashley looking at Reading takeover

There does appear to be some light at the end of the tunnel for Reading supporters with two buyers potentially interested in securing a deal for the financially-ridden League One side. One of those is believed to be Mike Ashley's Frasers Group and the other is American businessman William Storey.

Storey, the founder of the carbonated drink brand Rich Energy and has previously been involved in F1, was reportedly on the verge of completing a £50 million deal last week. The 45-year-old gave an unusual interview to BBC Radio Berkshire outlining his interest in buying the club, having failed to land deals for Sunderland and Coventry City since 2020.

Over the weekend, a Frasers Group helicopter was seen landing at the Select Car Leasing Stadium following the side's 3-2 loss to Portsmouth on Saturday. It is believed that representatives from the group met with Reading's Chinese owner Yongge to discuss a takeover deal.

A not-so-well-liked figure in the North East, Ashley was born in Walsall but grew up in Burnham, Buckinghamshire, which is just 20 miles from Reading. He is believed to be the frontrunner in a Reading deal.

Mike Ashley could reunite with former Magpies boss at Royals

Reports of Mike Ashley and Frasers Group interest in a Reading deal have also come with murmurs of a new manager at the Select Car Leasing Stadium, and it's a face Magpies fans will also be very familiar with.

Reading are currently managed by former Southampton boss Ruben Selles, who took the role in the summer after the side was relegated to League One. The 40-year-old hasn't had an easy task with off-the-pitch troubles and points deductions causing havoc, but 10 league defeats in the opening 14 fixtures and frustration at tactics have had fans calling for change.

Selles remains 'not concerned' about losing his job but The Sun journalist Alan Nixon claimed that should Ashley complete a takeover of the club, he could look at bringing Alan Pardew back to Berkshire. The 62-year-old left his role at Greek Super League club Aris Thessaloniki in February this year and is currently without a club.

Pardew of course spent four years in charge of the Magpies between 2010 and 2014 having begun his managerial career at Reading in 1998. He enjoyed success in Berkshire, securing promotion to Divison One and finishing fourth the following season.