Reading FC: Chinese takeover waiting on approval by Premier League

Chinese businessman Dai Yongge failed in an attempt to take over Hull City in September

The proposed takeover of Reading by a Chinese-based consortium is hinging on approval by the Premier League.

Businessman Dai Yongge and sister Dai Xiu Li began negotiations in November to buy the club from its Thai owners.

The Premier League, who have a say in takeovers of clubs who could compete in their league, are said to be cautious.

Yongge failed in an attempt to buy Hull City in September after reportedly not meeting the Football Association's fit and proper persons test.

One insider at Reading sees the Chinese offer as the "dream ticket".

However, the deal is dependant on convincing officials that Yongge and his associates are suitable additions to the English game.

Reading sit third in the Championship in manager Jaap Stam's first season in charge, but following a 1-0 defeat by QPR on Thursday, Dutchman Stam made his frustrations public at the uncertainty off the pitch.

"Everybody's asking me questions about what's going to happen," he told BBC Radio Berkshire.

"I don't know if there is going to be any more transfers.

"You need to have clarity within the group, a certain structure within the club with what's going to happen.

"What I thought was going to happen when I joined Reading was to build a team and hopefully make steps towards the Premier League.

"But, with the club for sale, you don't know what the new owners want to do."

Reading have been owned by the Thai consortium of Lady Sasima Srivikorn, Sumrith Thanakarnjanasuth and Narin Niruttinanon since September 2014.

They are understood to have become increasingly squeamish over the outlay required to bankroll the club from month-to-month.

Enthusiasm seems to be waning, despite Reading's exceptional form on the pitch, which has put them in promotion contention.