The Debt

[One8Seven1*]

Obviously, when the Thai's came in, we were told they were our saviours, and we were perhaps hours from going into Administration.
What concerns me is that the debt has increased every year since their takeover - 2013/2014 and 2014/2015. It'll be interesting just by how much when we see the next accounts.

Back before Anton came in and nearly ruined us, we had an annual black hole which frustrated many of the supporters, needing to sell a top player each summer just to keep us in the black. That black hole must now be double, or greater, than back then, plus we now have to find approx. £2.5m a season to keep the Cat 1 Academy going.

It all looks very bleak unless this club can get back into the Premier League, and even then, we'd have to perform miracles on a frugal budget to start paying off that debt, and try and maintain Premiership status (which we've tried and failed at twice before through being tight-fisted).

The Thai's have also made it clear that we need to be in the Premier League within a few years otherwise they'd have to cut their losses (I think that was Tiger a year or so ago. The article should be out there somewhere). Bare that in mind along with Royal Elm Park being built, and one of the clubs most sellable assets going, that would leave us needing a new owner with a much less attractive club to buy, and ever increasing debts. What were they last know to be?

Apologies for the apocalyptic theme.



* On a brighter note, and as I've mentioned previously, STAR have protected the stadium as an Asset of Community Value.

[bcubed]

Obviously, when the Thai's came in, we were told they were our saviours, and we were perhaps hours from going into Administration.
What concerns me is that the debt has increased every year since their takeover - 2013/2014 and 2014/2015. It'll be interesting just by how much when we see the next accounts.

Back before Anton came in and nearly ruined us, we had an annual black hole which frustrated many of the supporters, needing to sell a top player each summer just to keep us in the black. That black hole must now be double, or greater, than back then, plus we now have to find approx. £2.5m a season to keep the Cat 1 Academy going.

It all looks very bleak unless this club can get back into the Premier League, and even then, we'd have to perform miracles on a frugal budget to start paying off that debt, and try and maintain Premiership status (which we've tried and failed at twice before through being tight-fisted).

The Thai's have also made it clear that we need to be in the Premier League within a few years otherwise they'd have to cut their losses (I think that was Tiger a year or so ago. The article should be out there somewhere). Bare that in mind along with Royal Elm Park being built, and one of the clubs most sellable assets going, that would leave us needing a new owner with a much less attractive club to buy, and ever increasing debts. What were they last know to be?

Apologies for the apocalyptic theme.



* On a brighter note, and as I've mentioned previously, STAR have protected the stadium as an Asset of Community Value.

Regarding your last point about the stadium being listed as an ACV, I wasn't aware of this, so thanks for that
Not that it helps that much - it really just delays things. Once the moratorium period is over and even if the community has submitted a bid to purchase, the owner is free to sell their property to whoever they choose.

[Nameless]

we are the same as all the other clubs around. Is that news ?
Of course our debt has grown, our parachute payments have dropped hugely and we're earning less from TV.
So we have to do what other teams do and either reduce our spending or increase our earnings. Of course decreasing spending leads to accusations of lack if ambition, and increasing earnings does the same if it involves selling the odd player.
As things stand there doesn't seem too much to worry about. We seem to have reasonably clued up owners who have at least a mid term commitment. Loads of other clubs are worse off than us.

[Forbury Lion]

Debt is cheap, Why not take advantage of it as long as you have the means to pay it back?

The Thai's sending their own money over here to pay off the loans and save on interest payments makes no sense if it means they have to get the cash out of other investments that are making profits bigger than the interest costs being incurred.

[Royalwaster]

Totally agree - what a shambles. Really bad that the debt has increased.

And now ... on another note. Don't you agree that we really should have spent some cash bringing in a new striker?

[Ian Royal]

Obviously, when the Thai's came in, we were told they were our saviours, and we were perhaps hours from going into Administration.
What concerns me is that the debt has increased every year since their takeover - 2013/2014 and 2014/2015. It'll be interesting just by how much when we see the next accounts.

Back before Anton came in and nearly ruined us, we had an annual black hole which frustrated many of the supporters, needing to sell a top player each summer just to keep us in the black. That black hole must now be double, or greater, than back then, plus we now have to find approx. £2.5m a season to keep the Cat 1 Academy going.

It all looks very bleak unless this club can get back into the Premier League, and even then, we'd have to perform miracles on a frugal budget to start paying off that debt, and try and maintain Premiership status (which we've tried and failed at twice before through being tight-fisted).

The Thai's have also made it clear that we need to be in the Premier League within a few years otherwise they'd have to cut their losses (I think that was Tiger a year or so ago. The article should be out there somewhere). Bare that in mind along with Royal Elm Park being built, and one of the clubs most sellable assets going, that would leave us needing a new owner with a much less attractive club to buy, and ever increasing debts. What were they last know to be?

Apologies for the apocalyptic theme.



* On a brighter note, and as I've mentioned previously, STAR have protected the stadium as an Asset of Community Value.

We've basically always had a black hole. Madejski used to cover it, then player sales covered it, then Anton made it massive and failed to cover it and now the Thais are covering it.

It's not particularly likely to change if we got promoted as the costs will just scale up. As long as we're keeping it reasonably manageable and the Thais don't run or sell to a shyster we'll be ok. And in the meantime hopefully football utterly crashes and learns to be sensible.

[One8Seven1*]

Madejski didn't cover the black holes. He loaned the club money, at a lower interest rate, and he received every penny back as well.

[handbags_harris]

Madejski didn't cover the black holes. He loaned the club money, at a zero interest rate, and he received every penny back as well.

Corrected for you.

I think the proof of what is happening at the club will be borne out by the annual accounts which for season 15/16 will be due around December/January. We will then have a direct comparison to make against season 14/15 accounts. I'd like to see costs decrease, but I don't think they will given the expensive loan signings we made last season.

[Maneki Neko]

Madejski didn't cover the black holes. He loaned the club money, at a lower interest rate, and he received every penny back as well.

what an absolute bastard

[Nameless]

A lot of what SJM put in was converted into shares, so he only indirectly got his money back, and only got any of it back when the club was sold. I don't think he actually ever asked for repayment of any loan from the club.

[Ian Royal]

Madejski didn't cover the black holes. He loaned the club money, at a lower interest rate, and he received every penny back as well.

Roughly. Which is covering the black hole.

Owners don't throw money away for free.

[JamieY26]

I fail to see how Royal Elm Park would make the club less attractive to buy.... I would much rather buy a club that is at the heart of a busy commercial and residential centre than one on a naff skirt of town with a muddy car park.

I am also under the impression that the contracts that were written up for the development included a clause that ensures Reading Football Club have a stake in the development going forward, regardless of the thai's owning the club. I remember reading something about it when the plans were on display.

[Maneki Neko]

Madejski didn't cover the black holes. He loaned the club money, at a lower interest rate, and he received every penny back as well.

Roughly. Which is covering the black hole.

Owners don't throw money away for free.

unless theyre ridiculously rich
or idiots

[Royalwaster]

Madejski didn't cover the black holes. He loaned the club money, at a lower interest rate, and he received every penny back as well.

Roughly. Which is covering the black hole.

Owners don't throw money away for free.

unless theyre ridiculously rich
or idiots

Or money launderers.

[Tony Le Mesmer]

Madejski didn't cover the black holes. He loaned the club money, at a lower interest rate, and he received every penny back as well.

Stepping in to save the club when no one else would. Millions loaned to the club over 2 decades with the prospect of doing the lot, but maybe getting his money back if he played his cards right and things went very well. Guaranteed £30 odd mill out of his own pocket to build a stadium for your club. Crowds go up 5 fold and club succeeds beyond everything we hoped for. Then when he's not so rich, he's got the audacity to get his money back. What a b*stard, this is all his fault!

[muirinho]

Madejski didn't cover the black holes. He loaned the club money, at a lower interest rate, and he received every penny back as well.

Stepping in to save the club when no one else would. Millions loaned to the club over 2 decades with the prospect of doing the lot, but maybe getting his money back if he played his cards right and things went very well. Guaranteed £30 odd mill out of his own pocket to build a stadium for your club. Crowds go up 5 fold and club succeeds beyond everything we hoped for. Then when he's not so rich, he's got the audacity to get his money back. What a b*stard, this is all his fault!

+1000

[Maneki Neko]

+1001

[WAZZOCK]

What if Royal Elm Park is a roaring success and frees up plenty of funds to be invested into the football club

[Nameless]

I fail to see how Royal Elm Park would make the club less attractive to buy.... I would much rather buy a club that is at the heart of a busy commercial and residential centre than one on a naff skirt of town with a muddy car park.

I am also under the impression that the contracts that were written up for the development included a clause that ensures Reading Football Club have a stake in the development going forward, regardless of the thai's owning the club. I remember reading something about it when the plans were on display.

REP is being built by a company part owned by the Thais and part by RFC. SO THEORETICALLY RFC stands to benefit hugely.
But RFC is also owned by the Thais so they COULD pile all the costs into the RFC side and all the profits into the non RFC side.
I don't think this would happen, but as they own the club and the 18 companies associated with it they can do what they want.

[JamieY26]

I fail to see how Royal Elm Park would make the club less attractive to buy.... I would much rather buy a club that is at the heart of a busy commercial and residential centre than one on a naff skirt of town with a muddy car park.

I am also under the impression that the contracts that were written up for the development included a clause that ensures Reading Football Club have a stake in the development going forward, regardless of the thai's owning the club. I remember reading something about it when the plans were on display.

REP is being built by a company part owned by the Thais and part by RFC. SO THEORETICALLY RFC stands to benefit hugely.
But RFC is also owned by the Thais so they COULD pile all the costs into the RFC side and all the profits into the non RFC side.
I don't think this would happen, but as they own the club and the 18 companies associated with it they can do what they want.

Well lets hope the FA did their job when they conducted the fit and proper ownership interviews!