Reading FC 2018/19 accounts

[Royals and Racers]

Looks as if the accounts have been published and it`s not good news https://twitter.com/KieranMaguire?ref_s ... r%5Eauthor

[Jack Celliers]

Looks as if the accounts have been published and it`s not good news https://twitter.com/KieranMaguire?ref_s ... r%5Eauthor

Reading therefore paid £225 in wages for every £100 of income which is a Championship record, beating Birmingham’s £202 under Harry Redknapp.

Another record!

[One87One]

Looks as if the accounts have been published and it`s not good news https://twitter.com/KieranMaguire?ref_s ... r%5Eauthor

These are for 2018/19 lets not forget. Which meant last summer wasn't good news... i.e. being under the transfer embargo. However that was promptly dealt with and then we saw some rather ill timed (?) IMO record spending. The timing just seems bizarre considering how close to being in serious trouble we were (and very probably still are).

I love how Dim Tellor took a look at the figures and commented how we looked ok and within FFP...

I didn't realise we'd also sold the training ground to the owners as well. Any future financial trouble like that of last summer and we are well and truly in the shit.

[WoodleyRoyal]

Since 2008/9 Reading have had 1 year in the Premier League & 6 years of parachute payments. Their income over the period was £332m but wages were £337m, leading to an operating loss of £183m over the period, which works out as a loss of £319,000 every week, for 11 years

[Needle]

This is an absolute obscenity.

tbh I'm not missing it nearly as much as I thought I would and this doesn't make me want to rush back. I've just about had it with football.

[Uke]

We’re fûcked

But imagine how fûcked we’d be if there was a recession about to hit

[Green]

We’re fûcked

But imagine how fûcked we’d be if there was a recession about to hit

Fold the club

[tmesis]

We’re fûcked

But imagine how fûcked we’d be if there was a recession about to hit

Nah...we'll be fine.

The hyper-inflation caused by the busted economy will make that debt the equivalent of the price of a Twix by the end of the year.

[STAR Liaison]

There is a very good analysis of the accounts on the STAR website on the News tab. It has been written in a very easy to understand way so go and have a look.

[bcubed]

There is a very good analysis of the accounts on the STAR website on the News tab. It has been written in a very easy to understand way so go and have a look.

It is and there’s a link to it on the Finance thread

https://star-reading.org/wp-content/upl ... -FINAL.pdf

[One87One]

Via Kieran Maguire on Twitter

RFC have issued 23.2 million shares at 52.35 pence each. If issued for cash then investors have put in £12.2 million into the Club.

Don't expect big spending. This will be just to keep us alive. We are in a very precarious position. (at least Wigan have assets like their stadium and training ground...).

[Hound]

yeah saw that

we aren't in a precarious position unless the owners stop funding us. Then we are.

[One87One]

yeah saw that

we aren't in a precarious position unless the owners stop funding us. Then we are.

Sounds precarious to me. If the owner pulls out and someone very generous doesn't come in, then we are screwed. We don't have any assets. We don't own anything other than playing staff on vastly over-inflated wages.

[Hound]

yeah saw that

we aren't in a precarious position unless the owners stop funding us. Then we are.

Sounds precarious to me. If the owner pulls out and someone very generous doesn't come in, then we are screwed. We don't have any assets. We don't own anything other than playing staff on vastly over-inflated wages.

I think we can get rid of a lot of the big earners though tbh. If not this year, then certainly next

Need to ensure we dont make the same mistake again of piling the squad with average players but on stupid wages

[Mid Sussex Royal]

I read somewhere this week the owners have done a new share issue of 60m shares; no idea what the par value of the shares is though, assume it's to generate capital, is it allowed under FFP?

[Green]

I approached one city analyst for comment earlier, he muttered something about "throwing good money after bad" then took himself away down Lombard Street.

[Snowflake Royal]

yeah saw that

we aren't in a precarious position unless the owners stop funding us. Then we are.

Sounds precarious to me. If the owner pulls out and someone very generous doesn't come in, then we are screwed. We don't have any assets. We don't own anything other than playing staff on vastly over-inflated wages.

I think we can get rid of a lot of the big earners though tbh. If not this year, then certainly next

Need to ensure we dont make the same mistake again of piling the squad with average players but on stupid wages

The owners own our assets, so whilst it's not great they've been split off, it's still all owned by the same people.

If it was all under club ownership we'd have been relegated last year with a points deduction for breaching FFP without the ground sale and probably have a transfer embargo too. And in any case when the owners sell up they could just sell the club and none of its assets or split them up and sell them separately.

Essentially it doesn't matter how the assets are bundled, if the owners sell to the wrong people we're oxf*rd regardless.

[Nameless]

I read somewhere this week the owners have done a new share issue of 60m shares; no idea what the par value of the shares is though, assume it's to generate capital, is it allowed under FFP?

Is it not to remove debt ? If they convert money that is owed to them into shares it effectively disappears doesn’t it ? Per
They won’t be creating shares to sell to anyone else. I believe it is entirely legitimate under FFP. (If it wasn’t we wouldn’t be doing it) and it is one of the approved ways of owners getting money into clubs because it is not repayable so doesn’t create a liability (or something)

[Royals and Racers]

Details could be here.
New company document available: SH01 - 19/06/20 STATEMENT OF CAPITAL GBP 63342263.00 (received: 7 July 2020)
New company document available: RES10 - AUTHORISED ALLOTMENT OF SHARES AND DEBENTURES (received: 7 July 2020)

[Nameless]

Details could be here.
New company document available: SH01 - 19/06/20 STATEMENT OF CAPITAL GBP 63342263.00 (received: 7 July 2020)
New company document available: RES10 - AUTHORISED ALLOTMENT OF SHARES AND DEBENTURES (received: 7 July 2020)

So is that saying £63 million has been put into the club in return for additional shares ?