6.5M Profit!!!!!!!!

[A_Royal_Andy]

:shock: a football club making profit, surely not!!

Presumably this doesn't take into account Mr Mad's loan

Surely a club shouldn't make any money and all profit should be returned to the club, whether it be in playing staff, stadium expansion ...

Doesn't happen in the real world (unless you are Ebbsfleet!). However I'm sure they will keep a lot of the cash back as the new staduim expansion is going to cost a fair bit.

I haven't seen the accounts but it would be interesting to know what percentage of the profit is going to the shareholders & how much is being kept for captial investment?

[1960]

The £30million (not £30) TV money for coming bottom of the league will not be paid out until the end of the season, which will not even be in this financial year.

[Nezhen]

It just goes to show what a state we are in !

[Forbury Lion]

Had the accounts through today and we made a net profit of 6.5 million. More interesting was the turnover went from 17.7 million to 49 million, amazing what a year in the premiership does!!!!!!

more staggering is that somehow we spent £42.5 million.

Accounting is a wonderful thing. If they couldn't find a way to write off that 6.5 million, we must have done really well.

Or they're trying to attract investors by accounting in such a way as to show an accounting profit.

[Y21]

Does this mean we'll get cheaper season tickets next season? Somehow I doubt it. But then we don't matter, they get more money from TV than they do from fans.

[Stranded]

Does this mean we'll get cheaper season tickets next season? Somehow I doubt it. But then we don't matter, they get more money from TV than they do from fans.

So the club makes it's first decent profit in years and you want them to hand it straight over to us?

[Y21]

Does this mean we'll get cheaper season tickets next season? Somehow I doubt it. But then we don't matter, they get more money from TV than they do from fans.

So the club makes it's first decent profit in years and you want them to hand it straight over to us?

Ummm, yes?

[Stranded]

Does this mean we'll get cheaper season tickets next season? Somehow I doubt it. But then we don't matter, they get more money from TV than they do from fans.

So the club makes it's first decent profit in years and you want them to hand it straight over to us?

Ummm, yes?

Ok. So if the club makes a £6.5m loss in a couple of seasons time, you'll be happy to stump up the extra few thousand pounds to cover your share of the loss?

[Gus the teenage cow]

Does this mean we'll get cheaper season tickets next season? Somehow I doubt it. But then we don't matter, they get more money from TV than they do from fans.

So the club makes it's first decent profit in years and you want them to hand it straight over to us?

Ummm, yes?

Ok. So if the club makes a £6.5m loss in a couple of seasons time, you'll be happy to stump up the extra few thousand pounds to cover your share of the loss?

Yes absolutely I'll pay my share back if we make a loss but only if that loss is made by signing lots of top quality players

anyway stranded it's a moot point...if they do make a loss we'll get a huge hike in ticket prices again and be forced to pay it back in that way, kind of like Blairean stealth taxes

[Stranded]

Does this mean we'll get cheaper season tickets next season? Somehow I doubt it. But then we don't matter, they get more money from TV than they do from fans.

So the club makes it's first decent profit in years and you want them to hand it straight over to us?

Ummm, yes?

Ok. So if the club makes a £6.5m loss in a couple of seasons time, you'll be happy to stump up the extra few thousand pounds to cover your share of the loss?

Yes absolutely I'll pay my share back if we make a loss but only if that loss is made by signing lots of top quality players

anyway stranded it's a moot point...if they do make a loss we'll get a huge hike in ticket prices again and be forced to pay it back in that way, kind of like Blairean stealth taxes

You mean similar to the way we've paid stupidly inflated prices as the club lost money over the past 20 years. Oh wait, we weren't were we.

[Yorkshire Royal]

FootbalLOL fans. It's like the liverpool fans on the march this evening.. I will dig out the quote...

"Liverpool Football Club exists not to make money.

"It exists to win trophies and be a source of pride for its supporters.

"It serves no other purpose. Rafa is far and away the most important figure at Anfield, bar none."

What sort of deluded fantasy land do football fans live in. Club's are businesses, businesses need to make money. I think it is superb and comendable that Reading turned over a profit after so many years in the red... It's an example to the rest of the league how things should be done.

[Chaney]

I thought Madejski pocketed £60m - at least that is what some on here keep telling us.

bloody hell he must have deep pockets

[Behindu]

:shock: a football club making profit, surely not!!

Presumably this doesn't take into account Mr Mad's loan

Surely a club shouldn't make any money and all profit should be returned to the club, whether it be in playing staff, stadium expansion ...

I'd guess that would be OK as long as the reverse was true - a club should never make a loss and expenditure on wages / transfers / stadium should only be based on income.

[papereyes]

:shock: a football club making profit, surely not!!

Presumably this doesn't take into account Mr Mad's loan

Surely a club shouldn't make any money and all profit should be returned to the club, whether it be in playing staff, stadium expansion ...

I'd guess that would be OK as long as the reverse was true - a club should never make a loss and expenditure on wages / transfers / stadium should only be based on income.

Its just based on something I was told about my college.

The man who runs it feels that it shouldn't run at a profit. There is always something that can be built or bought that would make it better.

[Arch]

:shock: a football club making profit, surely not!!

Presumably this doesn't take into account Mr Mad's loan

Surely a club shouldn't make any money and all profit should be returned to the club, whether it be in playing staff, stadium expansion ...

I'd guess that would be OK as long as the reverse was true - a club should never make a loss and expenditure on wages / transfers / stadium should only be based on income.

Its just based on something I was told about my college.

The man who runs it feels that it shouldn't run at a profit. There is always something that can be built or bought that would make it better.

It might make sense to stockpile some profit. The state of Missouri has a balanced budget law that cuts both ways. If revenues exceed the budget, the surplus has to be sent back to the taxpayers. So every few years we get this piss-little check, and then in most years they're slashing things like the education budget because they don't have enough revenue and they have to balance the budget. If they hung on to the surpluses, it would all go more smoothly.

[Old Biscuitman]

FootbalLOL fans. It's like the liverpool fans on the march this evening.. I will dig out the quote...

"Liverpool Football Club exists not to make money.

"It exists to win trophies and be a source of pride for its supporters.

"It serves no other purpose. Rafa is far and away the most important figure at Anfield, bar none."

What sort of deluded fantasy land do football fans live in. Club's are businesses, businesses need to make money. I think it is superb and comendable that Reading turned over a profit after so many years in the red... It's an example to the rest of the league how things should be done.

You are right of course, but it's regrettable that for the big clubs the business needs have overwhelmed other aspects. I wouldn't say that football fans are living in a fantasy land, more in a past which was intrinsically more enjoyable. And you never know, things could change. Businesses have their cycles and, if ever the TV and merchandise revenues disappeared for any reason, the investors would cut and run as quickly as they have grabbed the money pots.

[westendgirl]

I haven't seen the accounts but it would be interesting to know what percentage of the profit is going to the shareholders & how much is being kept for captial investment?

I would make an educated guess that nothing will go back to the shareholders - in fact has Reading RF Ltd EVER declared a dividend, I doubt it very much.

[westendgirl]

Does this mean we'll get cheaper season tickets next season? Somehow I doubt it. But then we don't matter, they get more money from TV than they do from fans.

As an accountant I do wish that our education system enabled people to understand company accounts better. There is a distinction between capital items and revenue items and you need a surplus of revenue to be able to invest in capital.

Apart from the losses in previous years being more than this profit declared, a company cannot balance its books precisely to make no profit every year unless it is prepared to never invest. For instance a player's transfer fee cannot be written off against profit immediately and so you need to be able to accumulate profit (or have someone like a sugar daddy loan the money) to be able to buy new players, and the same goes for any stadium improvements.

[Geekins]

http://www.getreading.co.uk/news/2018/2 ... for_royals

Record profits for Royals
Reading Football Club have announced record profits of more than £6.5million for the year ending June 2007.

The club’s turnover rose from £17,768million the previous year to a staggering £49,908million.

Perhaps now Mr Madejski will put his hand in his pocket for new expensive players, even if the Manager still hasn't spent his budget in the last 2 years.
Every Ignorant RFC Fan Ever, Hidden Behind a PC Screen / East Stand
29/11/2007 at 11:16

Would these be the 6000 fans that seem to be missing from the attendance figures after the novelty of being a Premiership club has worn off?
Stephen, Reading
29/11/2007 at 11:11

Now we've got some money to spend, don't buy any french players. Or i could spend it wisely on some dogs. Racing dogs that is. DO ONE MUGS!
Spacey, Exeter
29/11/2007 at 10:02

Imagine how much it woulod have been if there was room to fit in the six thousand Reading fans who can't get in each week
Woodcote Royal, Nobbing
29/11/2007 at 09:48

A#6.5million? I can soon sort that out for you.
'arry, Portsmouth
29/11/2007 at 09:36

[Dirk Gently]

:shock: a football club making profit, surely not!!

Presumably this doesn't take into account Mr Mad's loan

Surely a club shouldn't make any money and all profit should be returned to the club, whether it be in playing staff, stadium expansion ...

You've put your finger on exactly where football went wrong - and one of the biggest scandals in the game - sadly one that hardly anyone knows about.....

When the FA was set up, as well as gate sharing, they instituted Rule 34, which was the rule which stopped money being taken out of football clubs. Amongst other things, these measures were designed to stop people using the game for excessive personal gain, and to ensure competitiveness between clubs.

In 1983, when Tottenham wanted to float as a plc, they went to the FA and asked for Rule 34 to be dropped. And - amazingly - it was, very quietly and without any objections - and without anyone really noticing or understanding what this would lead to.

So Tottenham became a plc, and lots of other clubs jumped onto the bandwagon and floated - and twenty years later the journalist David Conn discovered the machinations behind getting this rule dropped. (*)

Then the PL was setup and gate sharing also went, and all the good work done in the 1860 which had for over 120 years kept the game fair and competitive was finally swept away to give us the commercialised mess we have today.

(*) Anyone interested in this and the financial governance of football absolutely must read David's master-work - "The Beautiful Game? : Searching the Soul of Football" (2005) ISBN 0224064363