Administration

[Nameless]

What are the tax implications for a club on incoming transfer money?

No idea of there is VAT on footballers !
I'd assume the club pays tax on it's profits , so if as a result of transfer dealings you make a profit then you are taxed accordingly. So not an issue for us (or most clubs)

[SydenhamRoyal]

What are the tax implications for a club on incoming transfer money?

No idea of there is VAT on footballers !
I'd assume the club pays tax on it's profits , so if as a result of transfer dealings you make a profit then you are taxed accordingly. So not an issue for us (or most clubs)

They also have to pay employer taxes - paye and national insurance - vat on ticket sales and presumably tv money, so there is plenty of ways in which to incur taxes to pay

[Nameless]

What are the tax implications for a club on incoming transfer money?

No idea of there is VAT on footballers !
I'd assume the club pays tax on it's profits , so if as a result of transfer dealings you make a profit then you are taxed accordingly. So not an issue for us (or most clubs)

They also have to pay employer taxes - paye and national insurance - vat on ticket sales and presumably tv money, so there is plenty of ways in which to incur taxes to pay

The question was about transfers though. I assume the thinking was that if there is this tax bill would a player sale of £3.2 million cover it or would some of it go in tax. I would guess that if there is VAT then the fee would have to be £3.2 million plus VAT but there wouldn't be any other taxes to pay.
The big problem would be that few fees are paid in cash up front, they are often staged over several seasons and to get payment upfront we'd have to drop the price.
We also may have agent's fees and player payments to find.
So. £3.2 million sale may drop to £2.5 million for cash and then drop further once other payments were made

[Royal Rother]

We will definitely go into administration by the end of the summer if a new owner is not found in the next few weeks. I give us a month max before HMRC go to the courts. We need one of these interested parties to buy us. We are in such a mess who cares who gets us.

We COULD be in administration yes, but if we sell Obita, McCarthy, McLeary and a few others we could raise £15-20m and be perfectly safe with a much reduced wage bill.

they are not the big earners at the club!

What, the few others aren't?"

(I was being lazy, just listing those with potentially the highest potential tfr fee.)

[paddy20]

At best looking at who has come down I think the play offs will be way beyond us even without losing players

Sure, we'll need to compete with Fulham, Norwich and Cardiff next season, but on the flip side, we won't need to compete with Leicester, Burnley or QPR.

Norwich could do really well if they sort their act out, as could Cardiff, but I think Fulham have a lot to do.

If we don't lose anyone, a playoff campaign is very achievable.

I think you may be in dreamland a bit. We are highly likely to lose 3 of our best players and make do with the balance and younger players that are not ready. If we didn't make play-offs this year then unless we get new owners there is every chance we will be fighting relegation Even if we kept all our players we would still struggle with a smaller squad

[JordCot]

At best looking at who has come down I think the play offs will be way beyond us even without losing players

Sure, we'll need to compete with Fulham, Norwich and Cardiff next season, but on the flip side, we won't need to compete with Leicester, Burnley or QPR.

Norwich could do really well if they sort their act out, as could Cardiff, but I think Fulham have a lot to do.

If we don't lose anyone, a playoff campaign is very achievable.

I think you may be in dreamland a bit. We are highly likely to lose 3 of our best players and make do with the balance and younger players that are not ready. If we didn't make play-offs this year then unless we get new owners there is every chance we will be fighting relegation Even if we kept all our players we would still struggle with a smaller squad

Maybe, but sometimes teams just click. Look at Burnley.

[SydenhamRoyal]

At best looking at who has come down I think the play offs will be way beyond us even without losing players

Sure, we'll need to compete with Fulham, Norwich and Cardiff next season, but on the flip side, we won't need to compete with Leicester, Burnley or QPR.

Norwich could do really well if they sort their act out, as could Cardiff, but I think Fulham have a lot to do.

If we don't lose anyone, a playoff campaign is very achievable.

I think you may be in dreamland a bit. We are highly likely to lose 3 of our best players and make do with the balance and younger players that are not ready. If we didn't make play-offs this year then unless we get new owners there is every chance we will be fighting relegation Even if we kept all our players we would still struggle with a smaller squad

We might struggle. But on the other hand, if Karacan and Williams get, and then remain, fit, Guthrie stays, and Royston and KRK finally live up to their promise, we'll be alright

[paddy20]

There is am awful lot of ifs there Sydenham Royal ha ha

[SydenhamRoyal]

There is am awful lot of ifs there Sydenham Royal ha ha

And with each successive if I got more and more down hearted

[fruits]

The person I feel sorry for is the manager, he was apparently promised money on several
occasions ,none was forthcoming. I know people have criticised him on here saying with our
squad we should have made the playoffs.I disagree I think he did well getting us so close,
even footballers can read and they must have known about the invisible man , the Zig.
Says a lot for Nigel's motivational skills that we didn't go completely off the rails.
I know the team was inconsistent but considering all that was going on think he performed
a miracle overall.

With luck we can keep our back five in tact, which is not the fastest in the history of
football but reasonably efficient.
The midfield if we can keep Williams, Karacan comes back as good as ever, a full season from Guthrie.
Is pretty good.Lots of, ifs, I know.

The forwards I'm not so sure about, the Pog should score a load more and Alf blows a bit hot and cold.
Pray that Leeds take Drenthe off our hands. Would have thought Leeds has had enough of Reading
castoffs
I hope we don't have to let too many players go, if we lose, Obita and Mc Cleary we will be in trouble.
McCarthy will not be a disaster if he goes as we have a good goalie in reserve.

[Scutterbucketz]

I was talking to a friend of mine earlier today and her accountant husband is currently working closely with the club to try and sort the mess out. He specialises in insolvency and it's pretty much nailed on that we will go into administration. I haven't seen The Sun article but there is a lot of talk of a winding up order being issued (if it hasn't been already) due to a massive tax bill, so there is no other option.

If he specialises in insolvency why is he working with the club now to sort the thing out when it has not been declared insolvent?

And why, when he works in a particularly sensitive section of a profession that has become obsessed with risk management and information protection, would he be blabbing about it to all and sundry?

Or maybe, just maybe, it's more bullshit.

Still believe it's bullshit?

[Nameless]

Like a lot of stuff it looks to have a kernel of truth with a degree of embellishment .

We certainly have advisors advising on the sale, there is a tax bill to be paid. The size of the tax bill isn't massive and if it was 'nailed on' that we'd go into administration, well it hasn't happened yet, and there do seem to be several other options.

Has your friend still got a job ?

[winchester_royal]

Indeed, not sure what there is to get smug about here.

Proof of administration being 'nailed on'? - Nope
Proof of a 'massive' tax bill? - Nope
Proof of an imminent winding-up order? - Nope

All we know is that the club has debt and is struggling for investment, nothing new there.

[Scutterbucketz]

Given the clubs spending even when we have sold big in the past, I'd say a £3.2m tax bill is fairly massive.

It will be nailed on if we don't find a buyer. Even if we do sell all our best players.

[Nameless]

Spending on players is discretionary, a tax bill is not.
We've laid out more than this tax bill on plenty of players, I would be amazed if the club was unable to find this amount if the option was administration.

If we sold all our best players (and also saved their wages), you'll need to explain how a £3 million tax bill would bring us to our knees

[Ian Royal]

Given the clubs spending even when we have sold big in the past, I'd say a £3.2m tax bill is fairly massive.

It will be nailed on if we don't find a buyer. Even if we do sell all our best players.

If it's so nailed on, would you like to take the bet I offered loyalroyaldaz who made some nonsense about Anton taking £36m out the club up and Administration was more than likely very quickly without a buyer. Then said something about betting any money on it followed by running away scared when I called him out?

I believe it was £50 to your charity of choice if we go into Administration before August. Bet nul and void if we get a new owner in that time. If you're right you get to feel smug and see someone benefit financially. If you're wrong, you get to do some good.

I'm not even changing the terms now we've had some more reliable rumours of an actual Tax debt.

[Scutterbucketz]

I'd never bet on a Reading loss to win money so I won't do it here.

[Ian Royal]

I'd never bet on a Reading loss to win money so I won't do it here.

I can respect that.

[Jackson Corner]

Can someone explain how we are 38 million in the red? When he have'nt bought anyone for more than 3 million?

http://www.dailymail.co.uk/sport/footba ... -club.html

[Mike Hunt]

Can someone explain how we are 38 million in the red? When he have'nt bought anyone for more than 3 million?

http://www.dailymail.co.uk/sport/footba ... -club.html

WCBAP went out the window for a while