QPR Accounts

Thanks Nines.

 

Thanks Nines.
Now, can anyone put that in Laymans terms for a simpleton like me??

 

that takes some understanding, i'm still none the wiser

 

Top fella is TF, gets my vote every time, if it's good enough for him that's me suited and booted, we're so lucky to have him as a chairman, etc etc

 

The underlying P&L is just as ****e as the previous year, but the loan write-off makes it look excellent. Such a small part of the club's income is actual gate receipts and there's a significant fall in broadcasting rights income when you're relegated.

 

Reassuring from my perspective around any concerns about how we have declared the writing off of shareholder debt- Page 7 signed by Chantery Vellacot DFK LLP-

“In our opinion the financial statements:

- give a true and view… of the affairs

- have been properly prepared in accordance with UK Generally Accepted Accounting Practice

- have been prepared in accordance with Companies Act 2006”

Make’s it very tricky for Football League to make any quick and rash judgements- disputing accounts and more importantly imposing fines or threats about league status on the basis of their perception of numbers.

From what I understand the concern is that adding the £60m as exceptional income could be deemed by the Football League as being a Related Party Transaction (RPT). Then deciding to instead ignore these figures and instead apply what they perceive to be a 'fair value' to it

Not sure why all the fuss over this specific alleged RPT?! RPT's are normal business. To my knowledge the only time there is an issue with RPT is either if this money is percieved to be moved around for tax evasiion purposes or if money or services fom one company to another are to the detriment of the shareholders of the company lending without this being given freely (eg Enron scandal). The Football legue have no issues along these lines

So why this perceived RPT as an issue? Have a look at our outstanding loans. From interest charges it is clear the shareholder loans are interest free. This is very normal with many other football clubs and their owners/shareholders. Why doesn’t the football league take any issue with these RPT’s?

Plenty of owners do this. So will these RPT's be penalised?

In short Football League have made up rules outside of legal, financial practice and will want to seek to pick and choose how they impose these to the detriment of certain targets.

But lucky for us I think its going to be very hard if we are literraly doing nothing wrong

 

So we're 10M more in debt and we've given ourselves headroom by refinancing some short term liabilities?

The exceptional income is wonderful (thanks Tony). The rest looks horrific (unless I'm missing something).

 

Net cash outflow of £65m and loss before debt write-off of £70m. Fecking hell. This is going to end in tears.

 

Rich men do not throw money away.
Therefore we have to conclude (hope?) they know something we don't.
That is likely to be the Queens Park development but who knows if there are other uber secret irons in the fire.
Let's hope it is a 40 year plan and we don't do a Pompey.

 

So the directors earned £0
The 169 other staff, including players and all other staff , earned an average of £392,952.00 each !

 

Ignoring the exceptional item which is only a paper transaction, these are eye watering figures.....

Salaries and Social Security costs of £75m are almost TWICE the total income, the previous year they were roughly 120% of income. Add to that another £20m shown as cost of sales, not identified but presumably transfer costs and you are up to two and a half time total income..........oh and the number of staff actually increased from the previous year.

The trading loss is again £65m so in 2 complete financial years the the club has made an operating loss of £130,000,000........gulp.

 

We'll be back collecting money in buckets in a few years time I tell you. The club is haemorrhaging money big time. What's the plan? Are all our eggs in one basket? If so, is that going pear-shaped due to Car Giant?

 

Cheers Ninsesy. Written off £60m and lent the club another £60m odd, by May last year owners had thrown £240m in the black hole. Plus whatever they have shelled out over the last 10 months. No real underlying improvement in the day to day finances, but if we stay in the Prem for 20 years and Sky keep throwing money at it, it might all balance out if our squad consists of youth players on minimum wage, minus expenses.

Doesn't look like a 'going concern' to me, despite what the accounts say. But hey, much more important to discuss the BBC and Jeremy Clarkson.

 

I can see I was way off on my guess of 250 Million down the drain.
Too hot, too hot, to mingle friendship far is to mingle bloods - in other words, this will end in tears.

 

I fear Billy Bhatia will need to shave a few more quid off the florists bill to balance the books.

 

The bottom-line here is the Football League decide who can play in their league and if we are expelled TF will have to cough up or we'll be mixing it with Dover and Braintree next season. You can guarantee they'll hang us out to dry...

 

Thanks Nines. It's the wages that horrify. With directors earning nothing the players wages are pillaging our club and will move on and leave us with a deep hole. While a respect TF and his board for coughing up, you can only feel that there is gross mismanagement going on.
If we do go down, there will have to be some serious sorting out both on and off the pitch (I tend to agree that legal challenges will pull FFP down - perhaps the league shoul look at themselves an bring in League salary structures if it wants to help clubs instead of penalising them). If we stay up, something has to happen to reduce our wage costs and increase revenues.
My gut wrenches at what greed has done to this sport. Not against taking a fair share, but £70m in wages for a club of our standing and revenues.

 

Our story is certainly set in what seems like perma-winter. I have of late, wherefore I know not, lost all my mirth when considering this situation.