Club Financial Statement

[PEARCEY]

As a casual observer these days could somebody please explain this to me.
Steve Sidwell wanted £25,000 per week as a Premiership player and arguably our best player.
The club decides not to pay him that much out of a total salary bill of £30 million.
Our best player leaves for nothing rather than the £6million or so fee that he would have commanded.
Well-run club?

Would Sidwell have stayed though? I'm not so sure.
I accept the statement for what it is. Not thrilled about the money spent on players salaries but its all done and dusted now. However I do think that its clear Madejski is not interested in digging into his pockets any more which is fair enough...but he does need to stand aside soon as if someone else is willing to replace him and invest.

[Dirk Gently]

As a casual observer these days could somebody please explain this to me.
Steve Sidwell wanted £25,000 per week as a Premiership player and arguably our best player.
The club decides not to pay him that much out of a total salary bill of £30 million.
Our best player leaves for nothing rather than the £6million or so fee that he would have commanded.
Well-run club?

He wouldn't sign for a more reasonable fee, before the season started / early on. By the time he'd proved himself worthy of that fee, he'd decided he'd be off. Calculated risk. He'd have been off anyway, so all we'd have done is increased our coffers by less than the transfer fee involved.

I rather suspect the wage bill was not evenly distributed between the two seasons.

Plus for his season in the PL, Sidwell was actually our worst paid player. His refusal to sign a new contract meant he spent that year on CCC wage levels.

Also, if we'd sold him at the start of that season ()the only time we would have got £6M for him) then arguably we'd not have stayed up that first year.

And, if we had paid him what he wanted, all the other players' wages would have gone up to as the benchmark would have risen, so the salary levels would have been even higher!

[Sun Tzu]

but he does need to stand aside soon as if someone else is willing to replace him and invest.

He can't 'stand aside' !!

He's been publically asking for a buyer for years now .

he owns the club, there is no 'stand aside' option,

[Dirk Gently]

but he does need to stand aside soon as if someone else is willing to replace him and invest.

Wat do you mean by "invest?"

Give us money or lend us money?

[PEARCEY]

but he does need to stand aside soon as if someone else is willing to replace him and invest.

He can't 'stand aside' !!

He's been publically asking for a buyer for years now .

he owns the club, there is no 'stand aside' option,

By "stand aside" I mean allow somebody to buy him out. He isn't making it easy by stipulating it has to be a billionaire.

[PEARCEY]

but he does need to stand aside soon as if someone else is willing to replace him and invest.

Wat do you mean by "invest?"

Give us money or lend us money?

Give us the dosh Dirkers. Speculate to accumulate baby.

[Dirk Gently]

but he does need to stand aside soon as if someone else is willing to replace him and invest.

Wat do you mean by "invest?"

Give us money or lend us money?

Give us the dosh Dirkers. Speculate to accumulate baby.

Those two sentences contradict each other ... So you want someone to just give us millions, so what are they speculating for?

[Sun Tzu]

By "stand aside" I mean allow somebody to buy him out. He isn't making it easy by stipulating it has to be a billionaire.

I'm not sure that's being stipulated contractually !

More a statement of the sort of money it takes to finance a club these days !

Realsitically you'd need to be excessively wealthy to buy a club.

[PEARCEY]

Au contraire Dirk Dasterdly....Spend on playing staff in an attempt to get back into the Premiership. The club therefore becomes a more valuable commodity if Premiership status is gained (and more importantly retained longer term).

[Dirk Gently]

Au contraire Dirk Dasterdly....Spend on playing staff in an attempt to get back into the Premiership. The club therefore becomes a more valuable commodity if Premiership status is gained (and more importantly retained longer term).

Fair enough - that's where the money's going. But does this investor of yours give us the money or lend us the money?

[PEARCEY]

Au contraire Dirk Dasterdly....Spend on playing staff in an attempt to get back into the Premiership. The club therefore becomes a more valuable commodity if Premiership status is gained (and more importantly retained longer term).

Fair enough - that's where the money's going. But does this investor of yours give us the money or lend us the money?

He gives us the money Dirk because he sees that money as an investment that he will more than recoup upon selling the club as a Premiership entity which will be worth a lot more than what he paid for Reading FC when the club was languishing near the bottom of the second tier.
Its a very simplistic way of looking at things I'll admit but clearly Mr Mad is no longer willing to be a benovolent benefactor and I'm afraid thats whats needed to move this club back to the lofty heights of two/three years ago.
PS How's Mutley?

[The Quiet Man]

Well at least we now have an 'official' version of where the money has gone.

It makes me feel why the f**k are we as a club now bothered with the premier league - we can't afford it.

Also it was just as well SC didn't spend all that money that was supposed to be available to him.

[PEARCEY]

Well at least we now have an 'official' version of where the money has gone.

It makes me feel why the f**k are we as a club now bothered with the premier league - we can't afford it.

Also it was just as well SC didn't spend all that money that was supposed to be available to him.

Good point about Coppell not spending the money being made available to him. As for not worth being in the Prem as I've said above we need a Chairman willing to pour his own personal wealth into the club otherwise we can forget it.

[Dirk Gently]

Au contraire Dirk Dasterdly....Spend on playing staff in an attempt to get back into the Premiership. The club therefore becomes a more valuable commodity if Premiership status is gained (and more importantly retained longer term).

Fair enough - that's where the money's going. But does this investor of yours give us the money or lend us the money?

He gives us the money Dirk because he sees that money as an investment that he will more than recoup upon selling the club as a Premiership entity which will be worth a lot more than what he paid for Reading FC when the club was languishing near the bottom of the second division.
Its a very simplistic way of looking at things I'll admit but clearly Mr Mad is no longer willing to be a benovolent benefactor and I'm afraid thats whats needed to move this club back to the lofty heights of two/three years ago.
PS How's Mutley?

Ok, so it's income that doesn't appear on the balance sheet as liabilities. Thanks for clarifying that. Good luck in finding anyone in the world prepared to do that . They're not exactly queueing up, since it's a high-risk strategy as only 3 teams a year can go up, and lots of others are trying to do the same.

Then again, any shrewed investor will have noticed that if you do go up, you then have to pump in even more money just to compete - with no hope of actually winning anything. Two thirds of PL clubs this season expect to make a loss.

[PEARCEY]

^ Dirk how are Stoke funding all their in-coming players?

[Dirk Gently]

^ Dirk how are Stoke funding all their in-coming players?

Peter Coates, who owns/owned bet365.com, is putting the money in. He bought Stoke for a total of £5 - £1.7M cash and £3.3M to pay off debts. That's a quite different business proposition from an initial outlay of £80M to buy the club.

[PEARCEY]

^ Dirk how are Stoke funding all their in-coming players?

Peter Coates, who owns/owned bet365.com, is putting the money in. He bought Stoke for a total of £5 - £1.7M cash and £3.3M to pay off debts. That's a quite different business proposition from an initial outlay of £80M to buy the club.

Perhaps our chairman is being a bit greedy then.

[Man Friday]

at all of you who lap up this "information" without question. The most interesting financial information is always that which is not provided. This information is just a summary with many facts omitted. It's all in the presentation. Did it really need 2 months to pull this information together? I still think, however, that John Madejski has been brilliant for Reading (but, then again, Reading has been brilliant for John Madejski).

[Dirk Gently]

^ Dirk how are Stoke funding all their in-coming players?

Peter Coates, who owns/owned bet365.com, is putting the money in. He bought Stoke for a total of £5 - £1.7M cash and £3.3M to pay off debts. That's a quite different business proposition from an initial outlay of £80M to buy the club.

Perhaps our chairman is being a bit greedy then.

Or he's realised that putting more money in wouldn't get him any more out. If he invested £20M he'd probably increase the sale price by £20M also - and only then if we do go up with that investment. If we don't it's wasted money.

And if we go up and then no-one wants a buyer he's got to pump in more than £20M a year to have a reasonable chance of keeping us up.

It's a bleak, bleak picture, but I'm afraid that's the financial reality of today's football.

[Sun Tzu]

:lol: at all of you who lap up this "information" without question. The most interesting financial information is always that which is not provided.

Um, LOL at those who think everyone takes it at face value !!