CONFRIMATION of the CONFIMRED

[katweslowski]

Accounts published today for 2023/24 ( up to 30th June 2024)
12.4 M loss

Stupid question, but how bad is this? I know lots of clubs make a loss and it's generally just accepted as being what happens. Is this a high number or not?

I'm surprised in a way as I thought we had cut down wages to such a stupid extent, and also haven't bought anyone obviously.

[Royals and Racers]

Accounts published today for 2023/24 ( up to 30th June 2024)
12.4 M loss

Stupid question, but how bad is this? I know lots of clubs make a loss and it's generally just accepted as being what happens. Is this a high number or not?

I'm surprised in a way as I thought we had cut down wages to such a stupid extent, and also haven't bought anyone obviously.

1M a month loss - bad i would say and the new owners won’t stand for those sort of losses.

[windermereROYAL]

Accounts published today for 2023/24 ( up to 30th June 2024)
12.4 M loss

Stupid question, but how bad is this? I know lots of clubs make a loss and it's generally just accepted as being what happens. Is this a high number or not?

I'm surprised in a way as I thought we had cut down wages to such a stupid extent, and also haven't bought anyone obviously.

Allowed to lose up to £39m over a rolling 3 year period, anything over that and you`re sanctioned, 3x 12.4 =37.2.
Not great but we wouldn`t get points deducted for it.
Doubtful Couhig would like those figures, I`m sure it will be a priority to get them down.

[Elm Park Kid]

Accounts published today for 2023/24 ( up to 30th June 2024)
12.4 M loss

Stupid question, but how bad is this? I know lots of clubs make a loss and it's generally just accepted as being what happens. Is this a high number or not?

I'm surprised in a way as I thought we had cut down wages to such a stupid extent, and also haven't bought anyone obviously.

Allowed to lose up to £39m over a rolling 3 year period, anything over that and you`re sanctioned, 3x 12.4 =37.2.
Not great but we wouldn`t get points deducted for it.
Doubtful Couhig would like those figures, I`m sure it will be a priority to get them down.

Those rules only apply to Championship sides. You can lose whatever you want in league one as long as the owner is paying for it.

We do have to bare in mind that this was last season, but we were spending more than probably every team apart from the top 3 that season.

[Brogue]

Ok i've done a analysis this is what i can gather

The document presents the annual report and financial statements of Reading Football Club Limited for the year ended 30 June 2024.
​

Company Information
​

Directors: Mr. N Niruttinanon, Ms. X Hawken, Mr. Y Dai, Mr. D Pang.
Secretary: Mr. GP Odell.
Company number: 00053703.
Registered office: Select Car Leasing Stadium, Junction 11 M4, Reading RG2 0FL.
​
Auditor: Myers Clark, Watford, Hertfordshire.
​
Financial Review

Reported loss before tax: £12.4 million (2023: £21.7 million).
​
Total turnover decreased by £8.7 million to £10 million due to relegation.
​
Matchday revenue fell to £4.0 million (2023: £4.8 million).
​
Media broadcasting revenues decreased by £6.7 million to £2.7 million.
​
Salary costs reduced by £10.4 million to £14 million.
​
Profit on disposal of player registrations: £3.2 million.
​
Principal Risks and Uncertainties

Income sources: gate receipts, television, and commercial relationships.
​
Performance influenced by coaching staff and player quality.
​
Regulatory compliance with FA, FAPL, UEFA, and FIFA rules.
​
Funding provided by owners; cash forecasts indicate need for additional funds.
​
Key Performance Indicators

EFL League One position: 17th place.
Average match attendance: 13,912 (2023: 14,027).
​
Number of season ticket holders: 7,941 (2023: 8,204).
Wages to turnover ratio: 140% (2023: 131%).
Total wage costs: £14.0 million (2023: £24.5 million).
​
Directors' Report
​

No ordinary dividends were paid; no final dividend recommended.
Company committed to providing employment opportunities for disabled persons.
​
Future developments aim for promotion to the Premier League without jeopardizing finances.
​
Going Concern
​

Financial statements prepared on a going concern basis.
​
Material uncertainty exists regarding the availability of additional funds over the next 12 months.
​
Independent Auditor's Report

Financial statements give a true and fair view of the company's affairs.
​
Material uncertainty regarding going concern noted.
​
No significant misstatements identified in the strategic or directors' reports.
​
Statement of Comprehensive Income
​

Total turnover: £10,015,547 (2023: £18,679,926).
Operating loss: £15,556,481 (2023: £31,871,769).
Loss for the financial year: £12,373,973 (2023: £21,717,769).
​
Balance Sheet
​

Total assets less current liabilities: £90,939,040 (2023: £78,575,313).
Net liabilities: £90,950,025 (2023: £78,576,052).
Total equity: £90,950,025 (2023: £78,576,052).
​
Notes to Financial Statements
​

Accounting policies based on FRS 102 and Companies Act 2006.
​
Turnover includes media, matchday receipts, and commercial income.
​
Tangible fixed assets valued at £218,139 (2023: £450,317).
Total debtors: £16,689,613 (2023: £17,667,326).
​
Employee Information

Average monthly employees: 288 (2023: 283).
Total remuneration: £14,046,713 (2023: £24,470,211).
​
Termination benefits: £331,621.
​
Related Party Transactions
​

Loans from Reading Asia Holdings Limited: £1,089,142 (2023: £1,089,142).
​
Invoiced £1,500,000 for stadium lease from Prestige Fortune Asia Limited.
​
Events After Reporting Date

No player registrations acquired; two players sold for £3,000,000.
​
Contracts of two players terminated.
​
Ultimate Controlling Party

Immediate parent: Renhe Sports Management Co Limited.
​
Ultimate parent: Great Shine International Limited, controlled by Mr. Yongge Dai.
​
Cash Flow Analysis

Net cash outflow from operating activities: £2,643,448 (2023: £14,920,615).
​
Cash at bank: £716,377 (2023: £210,215).
Total borrowings: £92,690,960 (2023: £79,795,543).

[Linden Jones' Tash]

Accounts published today for 2023/24 ( up to 30th June 2024)
12.4 M loss

Stupid question, but how bad is this? I know lots of clubs make a loss and it's generally just accepted as being what happens. Is this a high number or not?

I'm surprised in a way as I thought we had cut down wages to such a stupid extent, and also haven't bought anyone obviously.

1M a month loss - bad i would say and the new owners won’t stand for those sort of losses.

It's pretty much what i was expecting based on the Charlton analogue.

Turnover; £10M
Costs; £25.5M
Of which All wages: £14M

Wage to revenue ratio = 140%

Player trading: £3.2M

So loss for year is £12.3M

We know from the STAR statement that this is roughly the same for the current season.

[Greatwesternline]

Stupid question, but how bad is this? I know lots of clubs make a loss and it's generally just accepted as being what happens. Is this a high number or not?

I'm surprised in a way as I thought we had cut down wages to such a stupid extent, and also haven't bought anyone obviously.

1M a month loss - bad i would say and the new owners won’t stand for those sort of losses.

It's pretty much what i was expecting based on the Charlton analogue.

Turnover; £10M
Costs; £25.5M
Of which All wages: £14M

Wage to revenue ratio = 140%

Player trading: £3.2M

So loss for year is £12.3M

We know from the STAR statement that this is roughly the same for the current season.

Albeit with Olise Azeez Smith and Selles sized intangible asset sales revenue probably swinging it to close to breakeven.

[Linden Jones' Tash]

1M a month loss - bad i would say and the new owners won’t stand for those sort of losses.

It's pretty much what i was expecting based on the Charlton analogue.

Turnover; £10M
Costs; £25.5M
Of which All wages: £14M

Wage to revenue ratio = 140%

Player trading: £3.2M

So loss for year is £12.3M

We know from the STAR statement that this is roughly the same for the current season.

Albeit with Olise Azeez Smith and Selles sized intangible asset sales revenue probably swinging it to close to breakeven.

Hopefully...

The stark reality is that there is a funding gap of £10M+ in L1 for a club like Reading.

That will need to be found somewhere..

Some people on here (HNA) seem intent on refusing to believe the facts as laid out in the accounts or STAR statement.

The current squad is costly, wages wise and if we are to strengthen, we need the new owners to fund it - which is a risk....

[Greatwesternline]

It's pretty much what i was expecting based on the Charlton analogue.

Turnover; £10M
Costs; £25.5M
Of which All wages: £14M

Wage to revenue ratio = 140%

Player trading: £3.2M

So loss for year is £12.3M

We know from the STAR statement that this is roughly the same for the current season.

Albeit with Olise Azeez Smith and Selles sized intangible asset sales revenue probably swinging it to close to breakeven.

Hopefully...

The stark reality is that there is a funding gap of £10M+ in L1 for a club like Reading.

That will need to be found somewhere..

Some people on here (HNA) seem intent on refusing to believe the facts as laid out in the accounts or STAR statement.

The current squad is costly, wages wise and if we are to strengthen, we need the new owners to fund it - which is a risk....

Oh fo sho. People already talking about new signings. I don't know exactly what money Couhig intends to put in. But losing £12m a year as it is now is already quite hefty.

They could stop paying themselves £1.5m a year to use their own stadium, but still...

[Mr Angry]

I know it's a little thing in the grand scheme of things, but losing to Eastleigh in the FA Cup last season definitely cost us in revenues (including opportunity costs).

[WestYorksRoyal]

Accounts good context for Couhig to make difficult but necessary decisions.

[Linden Jones' Tash]

Accounts good context for Couhig to make difficult but necessary decisions.

Do you mean hike up Ticket Prices by a significant amount?

[Silver Fox]

:lol:

FFS

Christ, wasn't this thread enough desperate attention seeking?

[Brogue]

:lol:

FFS

Christ, wasn't this thread enough desperate attention seeking?

wait, what? starting threads is now attention seeking? well i guess we should all pack up and go home then. How dare someone start a thread on the takeover of our football club on a football discussion forum!!

[Elm Park Kid]

You do have to ask though how we have a salary budget that high? I mean, given how many of the players are academy and the lack of any obvious 'big money' players. If we had 24 players earning £4k each a week that would be about £5m in total..... OK, more with NI, pension etc etc, but..... £14m? I know that figure includes non player staff, but still.

[Linden Jones' Tash]

You do have to ask though how we have a salary budget that high? I mean, given how many of the players are academy and the lack of any obvious 'big money' players. If we had 24 players earning £4k each a week that would be about £5m in total..... OK, more with NI, pension etc etc, but..... £14m? I know that figure includes non player staff, but still.

Quoting from the accounts.

2024 staff numbers:
total - 288
Players - 51
Football management & coaches - 84
Admin - 52
Govt schemes - 21
Match day staff - 80

[Forbury Lion]

Invoiced £1,500,000 for stadium lease from Prestige Fortune Asia Limited.

I don't recognise the company name, Is this the stadium company invoicing he football company, both owned by the same owners?

[Hound]

Yeah that wage bill still unsustainably high

I guess there was still a hangover from the champ days in these accounts - Ejaria must have been on some hefty wages, maybe the likes of Holmes, McIntyre,Yiadom, Hutchinson, Carroll were on a bit more than we thought

Only have Yiadom from that leaking into this year

[Silver Fox]

FFS

Christ, wasn't this thread enough desperate attention seeking?

wait, what? starting threads is now attention seeking? well i guess we should all pack up and go home then. How dare someone start a thread on the takeover of our football club on a football discussion forum!!

Starting the thread wasn't a problem at all, it's the pages of baloney from many, including yourself, that added nothing

But you do you

[Horsham Royal]

You do have to ask though how we have a salary budget that high? I mean, given how many of the players are academy and the lack of any obvious 'big money' players. If we had 24 players earning £4k each a week that would be about £5m in total..... OK, more with NI, pension etc etc, but..... £14m? I know that figure includes non player staff, but still.

Brogue's analysis has 288 employees ... Do the accounts split that into FTEs?
I assume most would be matchday only so low pay, but if more than ~50% are full time that would add up to a fair whack.