Reading FC ltd company announcement

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Stranded
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Re: Reading FC ltd company announcement

by Stranded » 12 Mar 2018 21:07

muirinho wrote:
Stranded wrote:
Hound wrote:BE very interesting to see how much of the increase in turnover was due to the good season - must have made a fair bit from the televising of the 3 play off games, as well as the full house at the Madejski and Wembley

Looked like a much improved year on the surface of things.

Did notice in the notes at the end, the cost of recruitment (15.5m) in the summer wasn't included. Think next years accounts may well end up being pretty ugly

Guessing the make up of that 15.5 went something like:

Dadi 2
Bacuna 2
Aluko 5
Mannone 2
Barrow 2.5
Edwards 1
Clement 1

Assuming Ilori is included in the accounts.


The 15.5m is transfers upto 30th June 2017 isn't it, so is money we spent on the likes of Moore, Ilori, Popa, Blackett, Harriott etc

Would also include staged payments on earlier transfers too, so could also include costs associated to transfers of Kermorgant, Bond, Rakkels or deals older than those.


It's the other way around - the 15.5mill is money spent since 1/7/2017. But, yes good point that it would include any staged payments for Ilori, Moore, Blackett etc


Fair enough. Why would they be quoted in accounts ending 30th June though? The value of transfers makes sense of course.

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Re: Reading FC ltd company announcement

by muirinho » 12 Mar 2018 21:19

Stranded wrote:
Fair enough. Why would they be quoted in accounts ending 30th June though? The value of transfers makes sense of course.


It's an accounting thing, where big expenditure that has already happened before the accounts were issued, but is not in the period of the accounts, gets mentioned. So (a) people know that it's coming - or, (b) if they already knew about it, know that it isn't included in that year, but will be in the next year.

It's like when my son tells me he isn't overdrawn - I'll want to know - is that including or excluding the student accomodation fee that I know is due in March. i.e., is he ok, or is going to come looking for a loan in five minutes.

Sadly, it tends to be the latter.

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Re: Reading FC ltd company announcement

by Stranded » 13 Mar 2018 09:58

muirinho wrote:
Stranded wrote:
Fair enough. Why would they be quoted in accounts ending 30th June though? The value of transfers makes sense of course.


It's an accounting thing, where big expenditure that has already happened before the accounts were issued, but is not in the period of the accounts, gets mentioned. So (a) people know that it's coming - or, (b) if they already knew about it, know that it isn't included in that year, but will be in the next year.

It's like when my son tells me he isn't overdrawn - I'll want to know - is that including or excluding the student accomodation fee that I know is due in March. i.e., is he ok, or is going to come looking for a loan in five minutes.

Sadly, it tends to be the latter.


Makes sense. Thanks for the explanation.

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Re: Reading FC ltd company announcement

by JR » 13 Mar 2018 14:02

muirinho wrote:
Stranded wrote:Looks like the club made a profit last year?


Yes, looks like there was a huge increase in matchday revenue - I'm guessing that will drop quite a bit this year!

And a big increase in commercial revenue (sponsorship and the like). If this is Ron Gourlay's doing, then I can see why they brought him in.


Not quite as positive as it may seem on the face of it - the company is only profitable because of the £9.2m loan write-off in the period. Without that there would have been a loss of £4.6m.

The accounts also do not have a clean audit opinion - there is an emphasis of matter in the audit opinion due to the material uncertainty of the company being a going concern.

I imagine it is not that unusual to see within football club accounts - it first appeared in the Reading accounts in the year ended Jun 16. It occurs because the club is so reliant on funding from its owners - without that continuing support it wouldn’t be a going concern.

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Re: Reading FC ltd company announcement

by muirinho » 13 Mar 2018 15:02

JR wrote:
muirinho wrote:
Stranded wrote:Looks like the club made a profit last year?


Yes, looks like there was a huge increase in matchday revenue - I'm guessing that will drop quite a bit this year!

And a big increase in commercial revenue (sponsorship and the like). If this is Ron Gourlay's doing, then I can see why they brought him in.


Not quite as positive as it may seem on the face of it - the company is only profitable because of the £9.2m loan write-off in the period. Without that there would have been a loss of £4.6m.

The accounts also do not have a clean audit opinion - there is an emphasis of matter in the audit opinion due to the material uncertainty of the company being a going concern.

I imagine it is not that unusual to see within football club accounts - it first appeared in the Reading accounts in the year ended Jun 16. It occurs because the club is so reliant on funding from its owners - without that continuing support it wouldn’t be a going concern.


That's interesting about the loan write off. who was the loan from? Thais?

Yes the "going concern" thing is standard for any club that is kept afloat by its owners. We are not a profitable club, and no hope of being profitable unless we get to the PL. Or head to League 2, close the academy, sell the ground and move to Adams Park or similar.


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Re: Reading FC ltd company announcement

by Snowflake Royal » 13 Mar 2018 23:02

Is the way transfer fees are apparently accounted for across the length of the contract taken into account in that £15.5m?

Could some of it essentially be money we've long since spent that is factored in for this year of those player's long contract?


Great the turnover went up so dramatically. What was the deal with wages in terms of % of turnover and amount compared to the previous season... any sign we'd cut back at all?

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Re: Reading FC ltd company announcement

by The Real Sandhurst Royal » 14 Mar 2018 10:09


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Re: Reading FC ltd company announcement

by Hound » 14 Mar 2018 10:12

muirinho wrote:
JR wrote:
muirinho wrote:
Yes, looks like there was a huge increase in matchday revenue - I'm guessing that will drop quite a bit this year!

And a big increase in commercial revenue (sponsorship and the like). If this is Ron Gourlay's doing, then I can see why they brought him in.


Not quite as positive as it may seem on the face of it - the company is only profitable because of the £9.2m loan write-off in the period. Without that there would have been a loss of £4.6m.

The accounts also do not have a clean audit opinion - there is an emphasis of matter in the audit opinion due to the material uncertainty of the company being a going concern.

I imagine it is not that unusual to see within football club accounts - it first appeared in the Reading accounts in the year ended Jun 16. It occurs because the club is so reliant on funding from its owners - without that continuing support it wouldn’t be a going concern.


That's interesting about the loan write off. who was the loan from? Thais?

Yes the "going concern" thing is standard for any club that is kept afloat by its owners. We are not a profitable club, and no hope of being profitable unless we get to the PL. Or head to League 2, close the academy, sell the ground and move to Adams Park or similar.


I'm not completely sure thats true. We've a massive squad - if you sold off the high earners, and instead invested in the academy/young players such as Evans, I could see us being profitable. Even if it involved dropping down a division. The academy continues to produce players who seem to be at League 1/2 level, so would be a mistake to close it.

Problem is we are so tied in now to long high paying contracts, it'd be a struggle to do that

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Re: Reading FC ltd company announcement

by Snowflake Royal » 15 Mar 2018 19:33

I wish we'd try.


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Re: Reading FC ltd company announcement

by John Smith » 16 Mar 2018 14:41

Hound wrote:
I'm not completely sure thats true. We've a massive squad - if you sold off the high earners, and instead invested in the academy/young players such as Evans, I could see us being profitable. Even if it involved dropping down a division. The academy continues to produce players who seem to be at League 1/2 level, so would be a mistake to close it.

Problem is we are so tied in now to long high paying contracts, it'd be a struggle to do that

The only thing we should be doing with Evans is finding a suitable club to sell him to. Most likely to be in the Scottish 2nd and 3rd tiers

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Re: Reading FC ltd company announcement

by Snowflake Royal » 17 Mar 2018 16:58

John Smith wrote:
Hound wrote:
I'm not completely sure thats true. We've a massive squad - if you sold off the high earners, and instead invested in the academy/young players such as Evans, I could see us being profitable. Even if it involved dropping down a division. The academy continues to produce players who seem to be at League 1/2 level, so would be a mistake to close it.

Problem is we are so tied in now to long high paying contracts, it'd be a struggle to do that

The only thing we should be doing with Evans is finding a suitable club to sell him to. Most likely to be in the Scottish 2nd and 3rd tiers

What is it that Evans has done to make you hate him so much? He's barely played this season and the entire squad have been shit.

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Re: Reading FC ltd company announcement

by Sutekh » 17 Mar 2018 18:02

Snowflake Royal wrote:
John Smith wrote:
Hound wrote:
I'm not completely sure thats true. We've a massive squad - if you sold off the high earners, and instead invested in the academy/young players such as Evans, I could see us being profitable. Even if it involved dropping down a division. The academy continues to produce players who seem to be at League 1/2 level, so would be a mistake to close it.

Problem is we are so tied in now to long high paying contracts, it'd be a struggle to do that

The only thing we should be doing with Evans is finding a suitable club to sell him to. Most likely to be in the Scottish 2nd and 3rd tiers

What is it that Evans has done to make you hate him so much? He's barely played this season and the entire squad have been shit.


Apart from Bod, Kelly, Moore and Barrow, no 2nd/3rd tier Scottish club would want to take a risk with any of them.

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