6.7 million profit

[brendywendy]

I'm no accountant, but my GUESS (and hope) is that Mr Mad's loans have had huge chunks paid back to him. The last accounts I have are for the year ending 30 June 07, when we made profit of £6.573M.

At that time the outstanding loans totalled £34.639M, of which £25.845M was on the books as Chairman's Loan. Looks like our overdraft was in at £8M.

Tangible assets (presumably stadium/hotel etc?) was valued at £54.298M with intangible assets (players??) at £6.855M.

Now since then, we've spent pretty much squat on transfers, and indeed have recouped considerable sums on Kitson, Sonko and Shorey. Similarly given no one player is on more than £25k a week, and we've lost a couple of high earners already, I would hope that the Chairman's loan has had a big chunk paid back out of last year's Sky money.

It would make sense. He could't find a buyer, and wanted his capital (at least) returned, which would also help explain why he's still happy to be at the helm. He's got a goodly portion of his money back, and the club pretty much funds itself, well at least until the parachute runs out end this season.

Be interested to see the results to year end 2008.

Anyway, all conjecture on my part. DYOR as they say.

year before that we made a loss of 6M(in a year where we had the most success, and the biggest crowds)

[Ian Royal]

Could you not just read one of the other 5 threads on the subject FFS.

Retards.

[ZacNaloen]

So we are now even with the Madman and his millions he put into the club because we've paid it back?

Perhaps we can stop camping up his rectum now?

Thanks.

When did you and Royal Lee swap places as most irritating person on The Team?

[brendywendy]

Could you not just read one of the other 5 threads on the subject FFS.

Retards.

oooooooooo




get you

[Royalee]

So we are now even with the Madman and his millions he put into the club because we've paid it back?

Perhaps we can stop camping up his rectum now?

Thanks.

When did you and Royal Lee swap places as most irritating person on The Team?

[Royalee]

So we are now even with the Madman and his millions he put into the club because we've paid it back?

Perhaps we can stop camping up his rectum now?

Thanks.

Will you stop camping up Coppell's rectum? I'm quite puzzled as to how you've ended up so far up there though because you're an even bigger ar$e than him.

[Arch]

So we are now even with the Madman and his millions he put into the club because we've paid it back?

No

[Elm Park]

Apparently, it helped to pay off some of the loans. Or something.

How any other clubs manage, I just don't know.

Expect Sun Tzu along shortly

Don't forget the player sales of last season which now Stoke survived means another £10million, allegedly.

I can appreciate the wages of all the staff going up....most would have come back down again following relegation. Also the loss of sponsors and TV money, but as we are told Reading are ran so well even pre Premiership....just where has all the money gone.

For what it's worth, you can make of it what you will:

2008 2007 2006 2005 2004

Turnover 51.5 45.0 12.3 10.1 10.5

Wages 27.3 24.8 11.1 8.2 6.7
Directors Remuneration 0.0 0.0 0.0 0.0 0.0
Other Costs 17.4 13.9 8.2 6.9 6.0

Profit 6.8 6.3 -7.0 -5.0 -2.2



Total Fixed Assets 44.6 38.0 32.0 31.2 30.8
Total Current Assets 4.8 2.8 8.2 5.6 6.0

Creditors due within 1 year:
Bank (7.9) (1.2) (10.0) (10.5) (8.7)
Due to Directors (8.9) (8.9) (9.0) (6.5) (4.5)
Other (14.0) (19.1) (15.4) (6.4) (5.2)

Long term liabilities:
Long Term Loans (14.6) (14.6) (14.6) (14.6) (14.6)
Other Long term Liabilities (13.7) (13.6) (14.1) (14.7) (14.7)

Total (9.7) (16.6) (22.9) (15.9) (10.9)


Share Capital 7.3 7.3 7.3 7.3 7.3
Accumulated Losses (17.0) (23.9) (30.2) (23.2) (18.2)

Total (9.7) (16.6) (22.9) (15.9) (10.9)


The current years figures won't be available until just before Xmas.

[Smoking Kills Dancing Doe]

Apparently, it helped to pay off some of the loans. Or something.

How any other clubs manage, I just don't know.

Expect Sun Tzu along shortly

Don't forget the player sales of last season which now Stoke survived means another £10million, allegedly.

I can appreciate the wages of all the staff going up....most would have come back down again following relegation. Also the loss of sponsors and TV money, but as we are told Reading are ran so well even pre Premiership....just where has all the money gone.

Well apparently every other club is wrong and we do it the best way at Reading. We'll be the only pro club in England still running in 5 years time.

The fact is we spent oxf*rd all, got relagated because of it and JM's panicked and is calling in the loan, even though he spent years and years telling anyone he could how he had given all this money to Reading.

Oh and believe me the other staff at football clubs get paid frack all....

[RoyalBlue]

I'm no accountant but I know and work with plenty.

The best are extremely good at making a set of figures portray a story in a certain light. They can make a poor result look nowhere near as bad, a good result look absolutely brilliant and, if needed, no doubt make a healthy result look less exciting.

Tax accountants are also expert in making someone not appear quite as wealthy as they actually are.

As a former shareholder in Amstrad, I always struggled to work out exactly where all the money in that organisation was going, not helped by various holding companies, companies supplying the services of AMS etc.

So my advice would be never to take a set of accounts at face value and if they are being presented to you by the accountants that prepared them, get some damn good accountants to interrogate them!

[Royal Rother]

I'll make a different stab at it...

23 League games last season, average crowd 19,000, average ticket price £20 generates less than £9m income. Add in say £3m from Sky money, £1m of sundry revenues gives £13m.

Doyle and Hunt were supposed to be on circa £20k pw = £2.5m (incl Employers NIC costs)

If we had another 18 players who could be considered 1st team squad on an average of £7k pw that would give another £6.7m.

Fringe / young players may have taken a conservative net (after loan contributions) £1m.

Coppell and the coaching staff would have taken approx £2m I guess.

Other administrative wages costs can reasonably be estimated as £2m.

It is safe to assume that the other costs of running the club would have been an absolute minimum of £10m (as shown above they were in 2008 17.4, 2007 13.9, 2006 8.2, 2005 6.9, 2004 6.0)

So, adding up the above we have:

Income of £13m.
Total Wages of £14.2m.
Other costs of £10m.

Oh, look, a loss of £11m - good job we had that parachute payment isn't it?

Player trading made us a profit but it would be sensible if that were left in the coffers for steady investment should it be required in the next 2 or 3 years. Some might prefer us to have blown it all last season, or indeed this close season, but that would be a gamble and it is definitely better to keep it in reserve for emergencies. JM has taken NOTHING out for many years if I recall, so no reason to think he will have started now.

I have no special knowledge of RFC but I think these numbers are reasonable and might just help open a few eyes - (hang on a sec, who am I kidding?). Anyway, do correct me if I've got something obviously wrong.

Anyway I'm sure the new manager will respect the fact that he can have a decent budget for new players but that will have to come from player sales - sensible management of a stable business.

Oh, and Royal Blue, RFC's accounts are open to scrutiny by many bodies and it is extremely unlikely money is being syphoned off anywhere, manipulated or hidden in any way - this is not some piddly little business where the accountants earn their money by creating a few expenses or schemes and turning blind eyes to stuff they know has happened but couldn't possibly have been expected to have noticed...

[Sir Rodger Doyle]

If you only knew the half of it...........................

[Northern Git]

I'll make a different stab at it...

23 League games last season, average crowd 19,000, average ticket price £20 generates less than £9m income. Add in say £3m from Sky money, £1m of sundry revenues gives £13m.

Doyle and Hunt were supposed to be on circa £20k pw = £2.5m (incl Employers NIC costs)

If we had another 18 players who could be considered 1st team squad on an average of £7k pw that would give another £6.7m.

Fringe / young players may have taken a conservative net (after loan contributions) £1m.

Coppell and the coaching staff would have taken approx £2m I guess.

Other administrative wages costs can reasonably be estimated as £2m.

It is safe to assume that the other costs of running the club would have been an absolute minimum of £10m (as shown above they were in 2008 17.4, 2007 13.9, 2006 8.2, 2005 6.9, 2004 6.0)

So, adding up the above we have:

Income of £13m.
Total Wages of £14.2m.
Other costs of £10m.

Oh, look, a loss of £11m - good job we had that parachute payment isn't it?

Player trading made us a profit but it would be sensible if that were left in the coffers for steady investment should it be required in the next 2 or 3 years. Some might prefer us to have blown it all last season, or indeed this close season, but that would be a gamble and it is definitely better to keep it in reserve for emergencies. JM has taken NOTHING out for many years if I recall, so no reason to think he will have started now.

I have no special knowledge of RFC but I think these numbers are reasonable and might just help open a few eyes - (hang on a sec, who am I kidding?). Anyway, do correct me if I've got something obviously wrong.

Anyway I'm sure the new manager will respect the fact that he can have a decent budget for new players but that will have to come from player sales - sensible management of a stable business.

Oh, and Royal Blue, RFC's accounts are open to scrutiny by many bodies and it is extremely unlikely money is being syphoned off anywhere, manipulated or hidden in any way - this is not some piddly little business where the accountants earn their money by creating a few expenses or schemes and turning blind eyes to stuff they know has happened but couldn't possibly have been expected to have noticed...

Think that is a fair assesment of out goings - if its accurate dont know. However there are a few glaring ommisions on the income side.

1) Hotel
2) Conference centre
3) London Irish
4) Match day car parking
5) Rental from Radio Station
6) Rental from Jazz Cafe
7) Fee charged to Reading Council for Park and Ride
Sponsorship (Waitrose) and Match day
9) Match day hospitality
10) Match day beverage and food sales
11) Fee for burger van 'pitches'
12) Merchandise and programme sales
13) Charges for one off events (Reading half marathon finish)

Now I know most of the above will have some sort of operating cost attached to them, but they will also generate a fair amont of cash for Reading FC Holdings PLC

[Royal Rother]

I included £1m of Sundry Revenues rather than listing them all out - bit conservative perhaps? I suspect my costs are similarly conservative to be honest.

If the total Wages and Other costs in 2006 were £11m and £8m respectively (as shown in the accounts published), then my estimates of £14m and £10m are likely to be a bit light for the year after relegation I'd have thought.

[working class hero]

Howe told readingfc.co.uk, "I was so pleased we put those 60 rooms on a year or so ago. A lot of people thought it was a mistake but what it has done is give us options.

"We need options now when we have to be price sensitive, and with local competition increasing it was important.

"We have upgraded the hotel and have spent money on it.

Hopefully we will now see an upgrade to the team with cash spent on it. If not we maybe need to start asking why we are the 2nd most expensive club in the CCC for a family to watch.

[Norfolk Royal]

Howe might be pleased with it but I stayed there a couple of weeks ago and the new family rooms are a bit on the pokey side. The swimming pool could do with a bit of an upgrade and the jacuzzi wasn't working.

[BanffshireRoyal]

I stay there 4/5 times a season when I'm down for matches but only because of its convenience. Food's nothing special and the hotel charges, particularly midweek, represent very poor value. I've paid as much as £130 a night - without breakfast. Were it not for the corporate trade it would be an unsuccessful part of RFC.

[Whore Jackie]

I'll make a different stab at it...

23 League games last season, average crowd 19,000, average ticket price £20 generates less than £9m income. Add in say £3m from Sky money, £1m of sundry revenues gives £13m.

Doyle and Hunt were supposed to be on circa £20k pw = £2.5m (incl Employers NIC costs)

If we had another 18 players who could be considered 1st team squad on an average of £7k pw that would give another £6.7m.

Fringe / young players may have taken a conservative net (after loan contributions) £1m.

Coppell and the coaching staff would have taken approx £2m I guess.

Other administrative wages costs can reasonably be estimated as £2m.

It is safe to assume that the other costs of running the club would have been an absolute minimum of £10m (as shown above they were in 2008 17.4, 2007 13.9, 2006 8.2, 2005 6.9, 2004 6.0)

So, adding up the above we have:

Income of £13m.
Total Wages of £14.2m.
Other costs of £10m.

Oh, look, a loss of £11m - good job we had that parachute payment isn't it?

Player trading made us a profit but it would be sensible if that were left in the coffers for steady investment should it be required in the next 2 or 3 years. Some might prefer us to have blown it all last season, or indeed this close season, but that would be a gamble and it is definitely better to keep it in reserve for emergencies. JM has taken NOTHING out for many years if I recall, so no reason to think he will have started now.

I have no special knowledge of RFC but I think these numbers are reasonable and might just help open a few eyes - (hang on a sec, who am I kidding?). Anyway, do correct me if I've got something obviously wrong.

Anyway I'm sure the new manager will respect the fact that he can have a decent budget for new players but that will have to come from player sales - sensible management of a stable business.

Oh, and Royal Blue, RFC's accounts are open to scrutiny by many bodies and it is extremely unlikely money is being syphoned off anywhere, manipulated or hidden in any way - this is not some piddly little business where the accountants earn their money by creating a few expenses or schemes and turning blind eyes to stuff they know has happened but couldn't possibly have been expected to have noticed...

That's a good assessment I'd say RR. Couple of observations:

– Think you've considerably underestimated Doyle and Hunt's pay. Doyle is rumoured to be earning closer to £40k pw.
– JM may have taken nothing out for many years, but he's also got an awful lot of his 'fortune' tied up in land and property. That coupled with a printing firm that's making huge losses and other problematic businesses, may well have led to a cash shortage in the last year.
– He'll also be employing the services of a very expensive accountant. I've no doubt he'll be worth every penny.

[Whore Jackie]

I stay there 4/5 times a season when I'm down for matches but only because of its convenience. Food's nothing special and the hotel charges, particularly midweek, represent very poor value. I've paid as much as £130 a night - without breakfast. Were it not for the corporate trade it would be an unsuccessful part of RFC.

Were it not for the corporate trade, the hotel would never have been built.

[leww_rfc]

Howe told readingfc.co.uk, "I was so pleased we put those 60 rooms on a year or so ago. A lot of people thought it was a mistake but what it has done is give us options.

"We need options now when we have to be price sensitive, and with local competition increasing it was important.

"We have upgraded the hotel and have spent money on it.

Hopefully we will now see an upgrade to the team with cash spent on it. If not we maybe need to start asking why we are the 2nd most expensive club in the CCC for a family to watch.

off the point, whose the 1st most expensive to watch in the CCC?