Losing 800k a week, wages 211% of turnover Absolutely ridiculous, just goes to show that many of these clubs are desperate for that promotion to the big time. Or in other words it's **** or bust!!!
Prior to lockdown, their average attendance was lower than ours too. Another unsustainable model for a below average sized club.
Even allowing for inflation, their owners are putting more money in than Jack Walker did to win the league for Blackburn. That’s how crazy the finances in the Championship have gone
I'm just looking at the accounts now. £17.8m turnover. A loss of £42m, up from £30.1m last year. A deficit in shareholders funds of £66.2m. Salaries of £38.5m (actually a slight reduction on 2019!) Net liabilities of £86.4m. Accumulated losses of £138.59m. And to get to these figures, they've reduced their player numbers from 63 to 61, and overall staffing numbers (inc players) from 549 to 494. Owing £86.59m to "group undertakings" within one year... which obviously isn't going to have happened. And they've converted just over £12m of debt in the year to 50p shares. What an absolute shambles. And this is only clipping the start of the global pandemic so you'd expect turnover to be down further, and not sure how much they may have cut their wage bill, but I doubt it will have been enough to be solvent.
Reading and football fair play 2018 - loss of £21m 2019 - loss of £30m 2020 - loss of £42m At a maximum loss of £13m pa under FFP they just miss the threshold by £53m. It is possible to make deductions from the profit and loss in respect of youth development and women’s football but I’m not sure they have done £53m worth. They have already sold their ground and training ground so that avenue of bending the rules is not available. If they don’t go up this season it will be interesting to see what happens to Reading.
If they're breaching FFP rules so heavily, surely it's equally interesting to wonder what would happen if they DID go up?
There’s a certain element of irony in the account which states ‘Strive for promotion to the premier league without jeopardising the club’s finances’.
and we're showing them you can a shot at promotion without breaking the bank and spending Gazillions. Everyone must be looking at themselves now and thinking wtf is happening! I love it
No, I believe if they go up they’re no longer anything to do with the EFL so they’ve basically off scot free.
Yes, the club can deduct direct COVID costs from their loss. Given these account were for the period to 30 June 2020 the impact would have been lost in the rounding of these losses. Matchday and commercial revenue were down in total £1.5m but this was partially offset by a grant of £0.8m.
that's right - I think Wolves are in the same position - as long as Wolves remain in the Premiership they're 'safe' but if relegated the EFL will be on to them ???
Think Reading were one of the original clubs who embarked on this sort of financing when (think is was Majedski) owned the club
The rules change though for relegated clubs, they are allowed a loss of £35m a year in the premier so for wolves they would be allowed combined losses of £83m at the end of their first year in the championship after relegation.
