Can anyone explain why the club is in financial difficulty?

[Forbury Lion]

If the debt was to them then they could just write it off, like Abrahamovic and Fernandes have done and the Bolton guy has said he will do.

Writing off debt one of your companies owes to another would improve the balance sheet of one and worsen the balance sheet of the other - that could have an impact on all sorts of financial measurements or loan covenants, Not to mention tax reasons - Reading FC only pay tax on profits, If all surplus cash goes on loan repayments or interest then they avoid paying corporation tax. You also get tax relief on interest payments - I think there are some changes due to come into place on that soon.

The accountants will take all of this into account and recommend the best course of action for their employers - they can then weight that up against the FFP rules.

[One8Seven1*]

I've just checked Rfc Prop Co Limited in a UK online business directiry: http://www.bizdb.co.uk/company/rfc-plot ... -09315720/. You have history of the company's directors here as well as the firm's filings featuring change of the company's name, incorporation's details and its officers.

TAWEESUK JACK SRISUMRID 919119429 Registered Address: Madejski Stadium Junction 11 M4, Reading, Berkshire, United Kingdom, RG2 0F

Taweesuk Srisumrid holds 6 appointments at 6 active companies, has resigned from 1 companies and held 0 appointments at 0 dissolved companies. Taweesuk began their first appointment at the age of 42. Their longest current appointment spans 0 years and 3 months at RFC BEARWOOD LIMITED. The combined cash at bank value for all businesses where Taweesuk holds a current appointment equals £700,227, with a combined total current assets value of £5,572,591 and total current liabilities of £59,377,984. Roles associated with Taweesuk Srisumrid within the recorded businesses include: Director

Read more at: http://companycheck.co.uk/director/919119429

IE RFC in all it's guises is around 53m in the hole. The debt hasn't been wiped out just transferred and underwritten by others.

the real reason for the purchase and their only chance to recoup that debt?

http://companycheck.co.uk/company/09315 ... -structure

this is very interesting unless it hasn't been updated properly or they bought/inherited TSI as part of the deal?

Ultimate parent company Ultimate Parent Name Company Number THAMES SPORTS INVESTMENTS LTD #0077598

RFC-PLOT-1-LIMITED
Subsidiary companies
Subsidiary Name Company Number
RFC PLOT 2 LIMITED 09316837
RFC PLOT 3 LIMITED 09316855

http://companycheck.co.uk/director/919119429


Credit Safe:
RFC-PLOT-1-LIMITED
Holding Company THE READING FOOTBALL CLUB LIMITED
Ownership Status Wholly Owned
Ultimate Holding Company THAMES SPORTS INVESTMENTS LTD

Group structure Full
Company Name
THAMES SPORTS INVESTMENT...
THE READING FOOTBALL C...
READING WOMEN'S FOOT...
RFC PLOT 1 LIMITED
RFC PLOT 2 LIMITED
RFC PLOT 3 LIMITED

In the time honoured fashion I'd like to say f*** off newbie, but this is too serious a matter for that nonsense.

I am no Chartered Accountant, but it does look as though you are correct re. the debt. I can't remember if the Thais were alleged to have paid off the debt, or merely taken it over. Would seem the latter. Which presumably means we are only "solvent" (and I use the term loosely!) until the Thais get fed up and move on.

The mention of TSI is also worrying on the surface, although I suspect this was the name of the overall company that they effectively bought off the Russian.

Hopefully the development of RFC Plots 1 to 3 will eventually wipe out the debt? Although knowing how developers work that will be highly unlikely!

Someone should write a book of the last 35 years of the ownership of the club. Wouldn't be a best seller, but would be of immense interest to some.

The Thai's make all their money out of the land, the club becomes a burden, gets sold, we get another dodgy owner later, or do a Bolton. My glass is never half full when football is concerned. I can only be pleasantly surprised tho...