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QPR announce £177m debt!!
Chris_from_Sidcup
Posts: 36,097
Queens Park Rangers are facing a record-breaking fine - even if they are promoted this season - after recording a huge £65.4million loss, taking their overall net debt to £177m.
The Championship club have posted their financial report for the year ending May 2013, and the document underlines the heavy spending of co-owner Tony Fernandes' reign.
But as a result of their failures on the pitch, QPR are now facing major ramifications under Financial Fair Play regulations, even if they are promoted back in to the Barclays Premier League this season.
Under Football League Financial Fair Play rules, the Loftus Road club are almost certain to be hit with a transfer embargo should they fail to secure promotion this season.
And Rangers could face a fine in-excess of £40million even if they are promoted this summer.
The club have recorded a net debt of £177million - a massive increase from £91.4m the previous year.
Turnover dropped from £64m to £60.6m, but wage costs sky-rocketed from £58.5m to £78m.
The news casts a huge cloud over the club's future and, in the report, Fernandes wrote: 'Clearly in 2012-13 the club did not meet its performance targets and was relegated from the Premier League.
'A critical driver of any club’s value is its presence in the Premier League, and the club is focused on regaining its Premier League status as quickly as possible.
'The financial results reflect the club’s focus on trying to achieve on-pitch success.
'When, alongside my business partners, I purchased a majority shareholding in the club in August 2011, my goal was to turn QPR into an established Premier League club.
'Being relegated was obviously not part of our plans, but our focus and determination to achieve our long-term goals has not diminished.
'During the summer 2013 transfer window we have worked to put together a squad of players we believe will give us a good chance of achieving promotion back to the Premier League.
'At the time of writing, we have made a good start to the 2013-14 season and we remain confident that under the guidance of our manager, Harry Redknapp, we have a squad capable of challenging for promotion.
'We are confident that the 2013-14 season will also see the club continue to make progress towards achieving its short, medium and long-term off-pitch targets.
'The group’s key short-term objective is to regain its Premier League status. The board believes that some restructuring of the playing squad is required in order to achieve this. However, they are conscious of the need for expenditure to be closely monitored and controlled.
'The directors, based on cash flow projections prepared by management and through confirmation of continuing support from the groups’ main shareholders and creditors, have a reasonable expectation that the company and the group have adequate resources to continue in existence for the foreseeable future.'
Their wage bill alone is £18m more than their turnover!!
The Championship club have posted their financial report for the year ending May 2013, and the document underlines the heavy spending of co-owner Tony Fernandes' reign.
But as a result of their failures on the pitch, QPR are now facing major ramifications under Financial Fair Play regulations, even if they are promoted back in to the Barclays Premier League this season.
Under Football League Financial Fair Play rules, the Loftus Road club are almost certain to be hit with a transfer embargo should they fail to secure promotion this season.
And Rangers could face a fine in-excess of £40million even if they are promoted this summer.
The club have recorded a net debt of £177million - a massive increase from £91.4m the previous year.
Turnover dropped from £64m to £60.6m, but wage costs sky-rocketed from £58.5m to £78m.
The news casts a huge cloud over the club's future and, in the report, Fernandes wrote: 'Clearly in 2012-13 the club did not meet its performance targets and was relegated from the Premier League.
'A critical driver of any club’s value is its presence in the Premier League, and the club is focused on regaining its Premier League status as quickly as possible.
'The financial results reflect the club’s focus on trying to achieve on-pitch success.
'When, alongside my business partners, I purchased a majority shareholding in the club in August 2011, my goal was to turn QPR into an established Premier League club.
'Being relegated was obviously not part of our plans, but our focus and determination to achieve our long-term goals has not diminished.
'During the summer 2013 transfer window we have worked to put together a squad of players we believe will give us a good chance of achieving promotion back to the Premier League.
'At the time of writing, we have made a good start to the 2013-14 season and we remain confident that under the guidance of our manager, Harry Redknapp, we have a squad capable of challenging for promotion.
'We are confident that the 2013-14 season will also see the club continue to make progress towards achieving its short, medium and long-term off-pitch targets.
'The group’s key short-term objective is to regain its Premier League status. The board believes that some restructuring of the playing squad is required in order to achieve this. However, they are conscious of the need for expenditure to be closely monitored and controlled.
'The directors, based on cash flow projections prepared by management and through confirmation of continuing support from the groups’ main shareholders and creditors, have a reasonable expectation that the company and the group have adequate resources to continue in existence for the foreseeable future.'
Their wage bill alone is £18m more than their turnover!!
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Comments
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What would our yearly wage bill be roughly?0
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Threpence apenny guvnor. Blimey they are some crazy numbers!!0
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3.5m guess0
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QPR's wage bill is higher than Dortmund's.3
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£78m in wages!! For that bunch?0
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I don't understand giving a club a huge fine, when they already have a huge debt - how's that going to solve anything.1
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quite ridiculous .. but probably a tax write off for AirAsia0
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Does the fine count for losses in the following year? If so, it's a quick route to bankruptcy!
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This, how can you fine a business £40million that is £177miliion in debt.PeakieRocket said:I don't understand giving a club a huge fine, when they already have a huge debt - how's that going to solve anything.
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They are fined only if they are promoted. The £40m fine comes out of the supposed £120m+ windfall of promotion.
Unbelievable wage bill0 -
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It say "even" if they are promoted above?IA said:They are fined only if they are promoted. The £40m fine comes out of the supposed £120m+ windfall of promotion.
Unbelievable wage bill0 -
IA said:
They are fined only if they are promoted. The £40m fine comes out of the supposed £120m+ windfall of promotion.
The thing is, a club rarely sees any of that 'windfall'. It all goes out the door to players and agents.
Let's say they get 120m, their wage bill is 78m leaving 42m. They'd have to pay a 40m fine leaving 2m and that's before they've even bought any players. Plus that wage bill would probably rise.0 -
If they're not, they face a transfer embargo.eaststandmike said:
It say "even" if they are promoted above?IA said:They are fined only if they are promoted. The £40m fine comes out of the supposed £120m+ windfall of promotion.
Unbelievable wage bill0 -
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Who thinks the league will bottle it and just give them a slap on the wrist/token fine?0
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Yeah, that's why I said "supposed" and why I can understand if RD isn't desperate to pump money into CAFC to get to the PL. Worrying though that a wage bill of £78m+ could be inevitable for PL strugglersChris_from_Sidcup said:IA said:They are fined only if they are promoted. The £40m fine comes out of the supposed £120m+ windfall of promotion.
The thing is, a club rarely sees any of that 'windfall'. It all goes out the door to players and agents.
Let's say they get 120m, their wage bill is 78m leaving 42m. They'd have to pay a 40m fine leaving 2m and that's before they've even bought any players. Plus that wage bill would probably rise.
Mike, I see what you're saying. I think they've got the wording wrong.
If promoted: fine
If not promoted: transfer embargo
Maybe I've misunderstood the FFP rules.0 -
David Conn @david_conn 2h
QPR accounts state that the club's continued "operational existence" depends on the financial support of Tony Fernandes and the other owners.
Really? : - )1 -
Pour encourager les autres - no carrot -just a big stick.PeakieRocket said:I don't understand giving a club a huge fine, when they already have a huge debt - how's that going to solve anything.
Easily - It's then up to the principals to raise the additional capital or the business goes bust.eaststandmike said:
This, how can you fine a business £40million that is £177miliion in debt.PeakieRocket said:I don't understand giving a club a huge fine, when they already have a huge debt - how's that going to solve anything.
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Tony Fernandes is a successful and rich businessman, but he's not that successful and rich, he doesn't have an unlimited amount of money to throw at the club, I would have thought he would be near his limit by now...0
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Easily - It's then up to the principals to raise the additional capital or the business goes bust.
I assume by raising it you mean borrowing it, therefore it adds to the debt. Even if a director put his hand in his pocket and slapped £40million on the table he would want it back therefore it is a loan thus added to the debt.
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Is it necessary to put a smiley face in every post you make, 99% of the time its neither witty or funny...Henry Irving said:David Conn @david_conn 2h
QPR accounts state that the club's continued "operational existence" depends on the financial support of Tony Fernandes and the other owners.
Really? : - )2 -
Hello, I'd like to say it was good to have you back trolling again but it's not.don_addick23 said:
Is it necessary to put a smiley face in every post you make, 99% of the time its neither witty or funny...Henry Irving said:David Conn @david_conn 2h
QPR accounts state that the club's continued "operational existence" depends on the financial support of Tony Fernandes and the other owners.
Really? : - )
Bye bye1 -
You forgot the smiley face Henry :-)2
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Fernandes owns something like 67% whilst the Mittal family owns the remaining 33%. The Mittal's are worth around £16.5 billion, so there's still a lot of money to throw at the club.killerandflash said:Tony Fernandes is a successful and rich businessman, but he's not that successful and rich, he doesn't have an unlimited amount of money to throw at the club, I would have thought he would be near his limit by now...
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Careful, you put a : - ) in there so don/seeaddick will be all over you. : - )eaststandmike said:You forgot the smiley face Henry :-)
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Well, perhaps they might think about offloading some of their overpaid players - that should raise some cash. Perhaps they don't buy anyone - or only spend a couple of million (imagine if we had that much to spend!). Take a season in the premiership, sort their finances out, and come back to the championship on a clean(er) slate.Chris_from_Sidcup said:IA said:They are fined only if they are promoted. The £40m fine comes out of the supposed £120m+ windfall of promotion.
The thing is, a club rarely sees any of that 'windfall'. It all goes out the door to players and agents.
Let's say they get 120m, their wage bill is 78m leaving 42m. They'd have to pay a 40m fine leaving 2m and that's before they've even bought any players. Plus that wage bill would probably rise.
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Extract from football-league.co.uk/page/FLExplainedDetail/0,,10794~2748246,00.htmlIA said:
Yeah, that's why I said "supposed" and why I can understand if RD isn't desperate to pump money into CAFC to get to the PL. Worrying though that a wage bill of £78m+ could be inevitable for PL strugglersChris_from_Sidcup said:IA said:They are fined only if they are promoted. The £40m fine comes out of the supposed £120m+ windfall of promotion.
The thing is, a club rarely sees any of that 'windfall'. It all goes out the door to players and agents.
Let's say they get 120m, their wage bill is 78m leaving 42m. They'd have to pay a 40m fine leaving 2m and that's before they've even bought any players. Plus that wage bill would probably rise.
Mike, I see what you're saying. I think they've got the wording wrong.
If promoted: fine
If not promoted: transfer embargo
Maybe I've misunderstood the FFP rules.
i. Sanctions for clubs remaining in the Championship
Clubs that fail to comply with the Financial Fair Play regulations (from December 1st 2014) will be subject to a transfer embargo. This embargo will come in to force ahead of the subsequent transfer window beginning on January 1, 2015.
The embargo will remain in place until the club is able to lodge financial information that demonstrates that it meets the Financial Fair Play regulations (either for the previous reporting period or a future reporting period).
ii. Sanctions for clubs promoted to the Premier League
Clubs promoted to the Premier League will be required to provide Financial Fair Play information for their promotion season by December 1. Any club found to have breached Financial Fair Play regulations will be required to pay a 'Fair Play Tax' on the excess by which the club failed to fulfil the Fair Play requirement, ranging from 1% on the first £100,000 to 100% on anything over £10m.
ALSO:-
Transition arrangements for clubs relegated from the Premier League
Clubs relegated from the Premier League will not be subject to sanctions in their first season in the Championship as long as they have met their financial obligations under Premier League regulations. They would, however, be subject to the potential of a Fair Play Tax if they achieved promotion in their first season in the Championship whilst not complying with the FFP regulations.0 -
What a surprise. Harry has ****ed yet another club.0
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Retweeted by Richard Cawley
Andy Street @ADGStreet 7h
It's likely, based on the last two years and the reduced revenue in the Championship that QPR could be £250m in debt by end of 13/14.0 -
I fail to see how I am trolling, it was a legitimate question.Henry Irving said:
Hello, I'd like to say it was good to have you back trolling again but it's not.don_addick23 said:
Is it necessary to put a smiley face in every post you make, 99% of the time its neither witty or funny...Henry Irving said:David Conn @david_conn 2h
QPR accounts state that the club's continued "operational existence" depends on the financial support of Tony Fernandes and the other owners.
Really? : - )
Bye bye
So you have the power to ban me, even though you are not a moderator? .-1
