Rob Couhig’s prospective deal to buy Reading has collapsed, raising fears over the future of the troubled League One club. Couhig, the former Wycombe owner, satisfied the English Football League’s owners’ and directors’ test but Reading’s owner, Dai Yongge, failed to complete a deal to sell the club.

Reading’s immediate future will be funded by the money generated from the sell-on clause in the deal that took Michael Olise to Bayern Munich from Crystal Palace, who paid Reading £8m for the midfielder in 2021. Yongge, who acquired the club with his sister in 2017, has failed to make several payments in recent years, leading to a series of points deductions.

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Couhig had invested at least £5m to meet monthly bills and wages but Reading say the 75-year-old American has been paid back. Couhig had attended matches and had plans to revive the club. Reading ­supporters have regularly protested against Yongge.

Reading said in a statement: “Despite lengthy and complex negotiations, the parties have been unable to find an agreement. This exclusivity period has now expired, and the club will pursue alternative options.

“The club acknowledges and appreciates the financial support provided by the potential purchaser during recent months. All loans have now been paid back to the potential purchaser in full along with the accrued interest.”

The club said Yongge “remains committed to the sale of Reading Football Club and provisions are in place to fund the club until a transaction is completed”.

Couhig and his business partner, Todd Trosclair, expected to complete a deal by the end of July but a complex purchase, encompassing laws in multiple countries, proved protracted. Couhig struck a basic agreement on terms in June and planned to bring the former Wycombe captain Joe Jacobson on board as sporting director.

Couhig spent transfer deadline day in Reading and wanted to sign at least three players but only one, Chem Campbell was permitted to join, on loan from Wolves, because of an EFL embargo that prevents them from paying fees for players.

It is thought Reading stand to make about £3.6m from Olise’s £50.8m transfer. The sell-on fee is to be paid in instalments, one this year and another in January. Reading’s annual wage bill is understood to be about £5m. In recent transfer windows they have sold homegrown youngsters to fund the day-to-day running of the club.

Reading’s financial difficulties meant the women’s side – a Women’s Super League team until May 2023 – had to withdraw from the Championship in June and are in the fifth tier. The men’s team were docked six points last season, when they finished 17th.