Financial Fair Play

[Nameless]

Your centre back gap is easily filled by McIntyre.

Think your midfield inclusions are wildly optimistic.

McLeary isn’t included on the stay or go list and there is Southwood as an additional keeper.

I’d consider keeping Ezatolahi if he gets fit, won’t be on big wages.

[Sutekh]

Would be great to be able to loan Miazga again as well. Though suspect that would come down to being able to stay up.

[Lower West]

Just hoping that the damage already done on the playing side is not too much to be able to recover from this season as relegation will just make it all worse and probably mean more cost cutting next season and even more of a real challenge for a manager to build a successful team.

Attendances may well pick up if we are challengers for promotion. With a team playing attractive football to watch. Difficult to see a turnaround for next season even if we manage to claw enough points together.

Aston Villa have reported a £36m loss. Doubt that this will be the last of the clubs in financial difficulty.

[RoyalBlue]

Reading in the chronic that since the Chinese took over we have lost £34.7m that's not far short of the £39m for exceeding the FFP threshold over 3 years.
Next year will need to be cost cutting like you wouldn`t know.

That's how much the club is in debt, not how much we've lost since they took over (yeah, I know, it's confusing).

According to the 'books' we have 'only' lost £17m in the previous two years; and a chunk of that won't be included in FFP calculations (academy costs, women's team, charity, other random stuff).

Looks like they'll be able to exclude £800K on the women's team for starters when it comes to the calculations.

[Zip]

What a mess Gourlay and Stam made at our club. 2017 was high risk with so many incomings at significant transfer fees and very little money being brought in for outgoings.
For Stam to then moan about not being given sufficient transfer funds is risible. The pcunt could have bankrupted us.

Then last summer when it was clear we had a huge squad very few players were moved on leaving us even more vulnerable to falling foul of FFP. Gourlay was a disaster for this club.

It does seem that Mannone may well have been telling the truth about his departure. We were clearly in dire straits. Thank God Howe returned and Gomes has been realistic in his expectations.

[Lower West]

Gomes has been realistic in his expectations.

Gomes was obviously briefed fully prior to taking the job. His appointment is a long term one. No chance of him losing his job.

[Hound]

Yes, Stam’s attitude is piss poor. If he’d brought in the additional signings he wanted who knows where we’d ended up financially.

Between him, BT and Gourlay they have done huge damage by paying ridiculous prices and wages to poor to average players.

I do wonder if our situation is part of the reason Luis Castro turned us down. Fair play to Gomes for embracing the task

Certainly Mannone was hinting at the issues. I get the impression Clement knew more than he let on as well and was clearly keen on a clear out last summer

[Snowflake Royal]

pretty poor reading that. Wages up to double turnover is a disgraceful position to get into. Gourlay has cost the club an absolute fortune, and last year was an absolute disaster in every sense. Stam whingeing about lack of backing really sticks

Undoubtedly the right thing to do to try to get that wage bill down asap. Expect Gunter, O Shea, McShane will also be out of the door in June, which will help matters further.

It's genuinely amazing if we've gone from ~120% of turnover in wages, to 86% and then back up to 200% again in about three seasons.

No wonder Gourlay got the old heave ho. Him and Stam are utter arsebiscuits.

[windermereROYAL]

Liam Moore probably couldn`t believe his luck when Gormless gave him his new extended contract at the start of the season. he must be on a huge wedge.

[Rax]

pretty poor reading that. Wages up to double turnover is a disgraceful position to get into. Gourlay has cost the club an absolute fortune, and last year was an absolute disaster in every sense. Stam whingeing about lack of backing really sticks

Undoubtedly the right thing to do to try to get that wage bill down asap. Expect Gunter, O Shea, McShane will also be out of the door in June, which will help matters further.

It's genuinely amazing if we've gone from ~120% of turnover in wages, to 86% and then back up to 200% again in about three seasons.

No wonder Gourlay got the old heave ho. Him and Stam are utter arsebiscuits.

It really didn't help with Gormless throwing contracts around like confetti!

[tidus_mi2]

Seeing the mess the previous lot made of our finances makes me a lot more sympathetic towards Clement and I already was in the group that thought he was gradually improving the team anyway.

Also a lot less respect for Stam as well.

[Lower West]

Seeing the mess the previous lot made of our finances makes me a lot more sympathetic towards Clement and I already was in the group that thought he was gradually improving the team anyway.

Also a lot less respect for Stam as well.

Becoming a major issue I suspect. Clubs wanting the riches of the premiership have to take a punt on better players, i.e. higher wages. Fail and there's a vertical fall. Rather like the demise of Leeds. One point off the Champions League. Yet they had already spent the season ticket money before the season even started (took on debt). Falling down the leagues with overpaid disinterested players seems a similar situation to our own. Unless players contracts ended naturally the club is stuck with them.

[JR]

Reading are the latest club to report their 2017/18 results with losses of ‘just’ £746,000 in 2017/18. An unusual grant receipt of £10m and flogging off some assets then helped reduce these losses to just £21m compared with a profit of £4.7m the previous year.
Turnover decreased by £18.8m from £36.7m to £17.9m. Average attendances declined from 17,505 to 15,181. Media revenue was the biggest factor in this decrease, accounting for 71 per cent, down from £20.9m in 2017 to £7.5m in 2018. Match day revenues were down by £5.5m. Commercial revenues were up by £0.8m to £5.6m. Rugby match commission was £592k.
There was a profit of £1.4m on the disposal of player registrations.
Reading’s income fell by £19 million but wages increased by over £7 million resulting in £197 of wages being paid for every £100 of income (76 per cent the preceding year). This is not far short of the staggering £202 achieved at Birmingham City through the 'Redknapp effect' ('king of the wages jungle').
The highest paid director earned £639,000 for masterminding this achievement (up from £374k the previous year).

Reading’s owners funded the losses with £16m of shares and £3m of loans in 2017/18.
Reading bought players for £19 million and had sales of £2 million in 2017/18.
Avoiding relegation is crucial if the club is to achieve some measure of financial stability.

That last sentence is important.

Where is that coming from? First sentence is completely incorrect, losses were £21m

[JR]

The audit opinion has an emphasis of matter in respect of going concern - which is highlighting that a material uncertainty exists in respect of the ability for the club to continue to operate in the foreseeable future. This is due to the reliance on ongoing support from the Chinese owners - there is £60m owed to them which is technically repayable on demand - so we are reliant on them not wanting repayments until the club can afford them. I haven’t checked back, but assume this was the same position in the prior year accounts.

It’s pretty shocking looking at the key figures for 17/18 season:

- Revenue halved (most perplexing for me was how matchday revenue decreased about 60% when attendances only down a third)
- Salaries increased 25%
- £21m loss despite a profit of £6.5m being made on fixed assets sale

[muirinho]

Reading are the latest club to report their 2017/18 results with losses of ‘just’ £746,000 in 2017/18. An unusual grant receipt of £10m and flogging off some assets then helped reduce these losses to just £21m compared with a profit of £4.7m the previous year.
Turnover decreased by £18.8m from £36.7m to £17.9m. Average attendances declined from 17,505 to 15,181. Media revenue was the biggest factor in this decrease, accounting for 71 per cent, down from £20.9m in 2017 to £7.5m in 2018. Match day revenues were down by £5.5m. Commercial revenues were up by £0.8m to £5.6m. Rugby match commission was £592k.
There was a profit of £1.4m on the disposal of player registrations.
Reading’s income fell by £19 million but wages increased by over £7 million resulting in £197 of wages being paid for every £100 of income (76 per cent the preceding year). This is not far short of the staggering £202 achieved at Birmingham City through the 'Redknapp effect' ('king of the wages jungle').
The highest paid director earned £639,000 for masterminding this achievement (up from £374k the previous year).

Reading’s owners funded the losses with £16m of shares and £3m of loans in 2017/18.
Reading bought players for £19 million and had sales of £2 million in 2017/18.
Avoiding relegation is crucial if the club is to achieve some measure of financial stability.

That last sentence is important.

Where is that coming from? First sentence is completely incorrect, losses were £21m

From Price of Football
https://twitter.com/KieranMaguire/statu ... 9751474176
I think that first sentence is meant to read
"Reading are the latest club to report their 2017/18 results with losses of ‘just’ £746,000 per week in 2017/18. "
as for other clubs he has been giving how much they lost per week. (e.g., Wolves lost £1million per week).

[muirinho]

The audit opinion has an emphasis of matter in respect of going concern - which is highlighting that a material uncertainty exists in respect of the ability for the club to continue to operate in the foreseeable future. This is due to the reliance on ongoing support from the Chinese owners - there is £60m owed to them which is technically repayable on demand - so we are reliant on them not wanting repayments until the club can afford them. I haven’t checked back, but assume this was the same position in the prior year accounts.

It’s pretty shocking looking at the key figures for 17/18 season:

- Revenue halved (most perplexing for me was how matchday revenue decreased about 60% when attendances only down a third)
- Salaries increased 25%
- £21m loss despite a profit of £6.5m being made on fixed assets sale

Speculating wildly, but possibly matchday revenue was massively down because
(a) there were less matches (no play-offs etc),
(b) wouldn't the previous year have included income from the play-off final (traditionally don't the losing club get most of the money?)
(b) attendances always include season-ticket holders, but if they don't turn up, they won't buy anything
(c) less income from hospitality, sponsorship and the like as it's a much harder sell when the club is doing very badly.
(d) more "family" tickets, which have free children - numbers may be up but revenue down

[fred sharpes nose]

Absolutely fascinating read - for non accountants a bit tricky but all makes sense. Basically Gourlay and BT (not Stam so much - his job is to ask, their's to say no) screwed us big time - surprised they didn't sack them earlier.

What stands out for me is 59 players and 99 football management and coaching staff - presumably this must include the part time scouts, and the cheap coaches who trot around the schools etc.

Would be really interested to understand what all that lot do

59 players presume - 1st team squad U23s U18s - so the 17 year old first time contract lads - so seems not so bad at 20 players per squad. I wonder what the accounting/business model for Academy is in terms cost and value generated for players we keep /transfer fees received

Overall I am sure the vast majority of players and coaches (2/3?) etc combined can't cost more than a few million - can they ?

Looks like NO big investment for years - maybe good bet for League 1 in the next year or two - with likely a young keen but inexperienced and unproven home grown squad. Have no problem with that. Maybe this is our last chance to fight it out in the Championship with a more proven (and possibly higher quality) squad than we will have in the coming years

Agreed Jose is here for years I reckon - lets hope he keeps his mojo

[Nameless]

THE player / coach numbers are presumably the total number who worked for the club at some point during the year. We didn’t necessarily have that number at the same time.
So if you change managers during the period and say 5 people leave and 5 new ones join then that is 10 employed during the year.
Likewise if you buy 5 players in each window and sell 5 then that is 20 players who have been employed at various points.
It will,also include lots of part time coaches who work with the Academy but possibly not the Community coaches as I think the Community set up,is a seperate organisation (but may be wrong)

[linkenholtroyal]

Your centre back gap is easily filled by McIntyre.

Think your midfield inclusions are wildly optimistic.

McLeary isn’t included on the stay or go list and there is Southwood as an additional keeper.

I’d consider keeping Ezatolahi if he gets fit, won’t be on big wages.

CB would still be a worry if we lost Moore, Blackett would be most experienced Centre Back at the club. would like someone like Lindsay from Barnsley not massively expensive but it is a solid CB and can do a job.
Sorry missed out Mccleary but still think we would be short of a wide player potentially this would be filled by a loan anyway.
I agree on Ezotolahi as well a very good option as he is on a free and plays the holding position well. If we are sticking with our system Ezololahi and Rinhomota would tick one box.

[Royals and Racers]

One important thing to be aware of is that these accounts are upto end June 2018 so we have had 8 further months where the attendances have continually fallen so this years situation could be even worse !!!