QPR financial results

[shefcanary 2,377]

Apologies for this, but here''s another fascinating comparison of how well McNally and Smith & Jones have been doing on the management of the club.  Swiss Ramble has been posting his summary of QPaRse''s financial results for last season on Twitter. 

 

#QPR 2012 results have been published: a loss before tax of £22.6m, which is a small improvement on 2011 loss of £25.4m.  The impact of promotion to Premier League is clear in #QPR 2012 results with revenue rising from £16.2m to £64.0m.  Unfortunately #QPR do not analyse the £64m revenue, but we know they got £43.3m from Premier League TV deal, while gate receipts were £7.7m. 

 

#QPR wage bill almost doubled from £29.7m to £58.5m, but wages to turnover ratio fell from 183% to 91%.  #QPR wage bill not outlandish compared to many other clubs in 2011/12, e.g. Everton £63m, Fulham £62m, Bolton £55m, Stoke £53m.  However, only Blackburn and Bolton had worse wages to turnover ratio than #QPR 91% in 2011/12 Premier League. For context, Man City was 87%.  It should be noted that the 2012 #QPR wage bill of £58.5m is before all the high-profile signings this summer and January. 

 

Worryingly, the #QPR aggregate losses for the last four seasons amount to a sizeable £80m.  #QPR net debt is up from £56.1m to £88.9m (gross debt £90.5m less £1.6m cash).  All of #QPR debt is owed to the club’s owners and (in theory) repayable in instalments before 22 May 2014 or on demand.  Owners put £39m funds into #QPR in 2012, so club has required £104m of funding in last 4 years, split between loans and capital injections.  #QPR fans will surely be hoping that the owners emulate Al Fayed at Fulham and Whelan at Wigan by converting debt into equity at some stage.

 

All in all that would not have been too worrying a picture, if they had pushed on from last season, given the financial backing they have in the shape of the Indian billionaires.  However as Swiss Ramble states that is before they repeated last seasons performances and two spells of "panic buying" in the summer and in January.  I think that will have taken the need for a cash injection this year to be far in excess of the average over four seasons of £26M. 

 

So it again underlines how well we have been doing to move from owing £20 odd million (which had accumulated over a decade remember, not just in the last season as with QPR''s average seasonal borrowing) to be debt free in three months time!  Only makes you think what we could have done if we had access to that financial support though.  But probably it would have ruined the club.

 

For QPR - relegation this year will see Loftus Road sold and as the owners recover their losses and eventually closure of the club.  Any takers for Redknapp in the future?

[shefcanary 2,377]

Just seen discussion on this in another post - this took some time to compile and someone else got there first - feel free to combine Pete!

[BroadstairsR 2,136]

Quote sheffcanary:

 

 "For QPR - relegation this year will see Loftus Road sold and as the owners recover their losses and eventually closure of the club. Any takers for Redknapp in the future?"

 

I don''t really see this happening. Relegation will be a financial "blip" in the context of the Fernandes/Mittal combined fortunes and all the investors seem deeply involved in the club for various reasons.

 

I feel that they would be highly likely to "yo-yo." in any case.

 

Also, hasn''t Fernandes got bigger plans that involve re-locating from the historical monument that is in Loftus Road to a new super stadium and complex that would make that part of London the epi-centre of the Capital''s football for years to come? Exciting stuff if it comes off and, whilst not on the level of a Boris Island, demonstrates the visionary zeal that typifies the man.  

 

Massive plans, but just Wiki the man''s business history to see what he is capable of.

 

Contrary to what others seem to think, I consider that he knows exactly what he is doing down there. Give or take a few unfortunate managerial appointments (see Marcus Evans and others,)  a few dodgy signings (see ITFC and others) and a few millions (see AirAsia etc.) and, knowing of the man, would personally write that club off at my peril.

 

I am a great admirer of Fernades, whilst most seem not to be, and although we may firmly dislike the way that his massive injections of money distort the Game, he isn''t the first to do this, he isn''t the only one by far and he won''t be the last. I find it a bit self-hypocritical that whilst I resent the money that is being put into that club and the expansive way it is being spread around, with seeming disregard and with much of it into over-paid players bank accounts (HMRCE do rather well out of it as well btw,)  I slaver at the mouth at the thought of the money we might get next season and the "big" signings that  might be on our horizon. Different planets with regards to "prudence," that''s all.

 

This, of course, is a far bigger issue than matter in the confines of Shepherd''s Bush and, as sheffc hinted, the ball is firmly in the court of the footballing authorities and nowhere else. The Financial Fair Play thingy might eventually reign things in a little, the intent is there at least, but I feel that the horse has long since bolted.

 

I could go on for pages about all this, the Big Financial Issue, but have no fear I won''t. It would induce pages of contradicting views and criticism, which I would have some fear of.  

 

As far as Tony and the Hoops is concerned, the most pertinent comment I remember reading about this situation (I think on here) was from the poster when, in answering critical  comparisons between QPR and Portsmouth/ Leeds/Rangers etc. pointed out that these others spent "money they did not have" whilst Fernandes & Co. "spend money they do have." More complicated that this for sure, but very is clear is that big money had begun to take over football long before Tony Fernades mortgaged his house to buy his first Boeing aeroplane to start up AirAsia.

 

Good luck to him, say I.            

 

  

[shefcanary 2,377]

Broadstairs, I think you''re right about the comparison with Portsmouth/ Leeds/Rangers.  Up to ''Arry''s arrival, QPR had a budget and generally stuck to it, be it an "unfair" one by Norwich comparisons.  Hence my comment that the results were not as bad as one might have expected.  True indeed, they are spending all their own money and no-one elses.  In addition my comment about selling Loftus Road was indeed linked to TF''s plans for relocation - if they go down I can see those plans being accelerated, not deferred.  If they stay up though (big if), the extra TV money would suffice for a couple of years and they could take more time on relocation.  Relegation however would lead to severe doubt over ''Arry''s future in the game.

[Bert sneakers 0]

Unfortunatly I can see QPR staying up then Harry wiill be looked pon as even more of a saint when in fact he just took a massive gamble on the clubs exsistance.

They have a good run of games coming up and I expect to see them dragging themselves clear, not what I want but I feel that''s what will happen.

[Mister Chops 7]

[quote user="Bert sneakers"]Unfortunatly I can see QPR staying up then Harry wiill be looked pon as even more of a saint when in fact he just took a massive gamble on the clubs exsistance.

They have a good run of games coming up and I expect to see them dragging themselves clear, not what I want but I feel that''s what will happen.[/quote]Bet 365 will give you 9/4 on QPR not being relegated, so why not lump some cash on it and get a decent return?(Norwich 1/40 NOT to be relegated)

[xymox 7]

Worth a punt Mr C

Home v Sunderland

Away v Villa

Away v Fullham

Home v Wigan

They could win all of those.

I will still earn more on my bet last August that Norwich will stay up

[PurpleCanary 5,553]

[quote user="BroadstairsR"]

Quote sheffcanary:

 

 "For QPR - relegation this year will see Loftus Road sold and as the owners recover their losses and eventually closure of the club. Any takers for Redknapp in the future?"

 

I don''t really see this happening. Relegation will be a financial "blip" in the context of the Fernandes/Mittal combined fortunes and all the investors seem deeply involved in the club for various reasons.

 

I feel that they would be highly likely to "yo-yo." in any case.

 

Also, hasn''t Fernandes got bigger plans that involve re-locating from the historical monument that is in Loftus Road to a new super stadium and complex that would make that part of London the epi-centre of the Capital''s football for years to come? Exciting stuff if it comes off and, whilst not on the level of a Boris Island, demonstrates the visionary zeal that typifies the man.  

 

Massive plans, but just Wiki the man''s business history to see what he is capable of.

 

Contrary to what others seem to think, I consider that he knows exactly what he is doing down there. Give or take a few unfortunate managerial appointments (see Marcus Evans and others,)  a few dodgy signings (see ITFC and others) and a few millions (see AirAsia etc.) and, knowing of the man, would personally write that club off at my peril.

 

I am a great admirer of Fernades, whilst most seem not to be, and although we may firmly dislike the way that his massive injections of money distort the Game, he isn''t the first to do this, he isn''t the only one by far and he won''t be the last. I find it a bit self-hypocritical that whilst I resent the money that is being put into that club and the expansive way it is being spread around, with seeming disregard and with much of it into over-paid players bank accounts (HMRCE do rather well out of it as well btw,)  I slaver at the mouth at the thought of the money we might get next season and the "big" signings that  might be on our horizon. Different planets with regards to "prudence," that''s all.

 

This, of course, is a far bigger issue than matter in the confines of Shepherd''s Bush and, as sheffc hinted, the ball is firmly in the court of the footballing authorities and nowhere else. The Financial Fair Play thingy might eventually reign things in a little, the intent is there at least, but I feel that the horse has long since bolted.

 

I could go on for pages about all this, the Big Financial Issue, but have no fear I won''t. It would induce pages of contradicting views and criticism, which I would have some fear of.  

 

As far as Tony and the Hoops is concerned, the most pertinent comment I remember reading about this situation (I think on here) was from the poster when, in answering critical  comparisons between QPR and Portsmouth/ Leeds/Rangers etc. pointed out that these others spent "money they did not have" whilst Fernandes & Co. "spend money they do have." More complicated that this for sure, but very is clear is that big money had begun to take over football long before Tony Fernades mortgaged his house to buy his first Boeing aeroplane to start up AirAsia.

 

Good luck to him, say I.            

 

  

[/quote]

 

That may have been me. It may even be true...

I don''t think Fernandes has been a total train wreck, but I think you are over-egging the pudding a bit, BroadstairS. Especially when you regard his grandiose plans as A Good Thing. As I posted a couple of weeks ago I think that is exactly where he has gone wrong:

There was a revealing interview with Fernandes in the Financial Times a few weeks ago. He described QPR as "a phenomenal branding tool" for his main business. "AirAsia has got so much coverage." It added to the impression that under Fernandes QPR has become part of showbiz, with celebrity players and managers, to gain maximum publicity. An obvious contrast with be with the two other promoted clubs from that season, ourselves and Swansea, both of which seem to be run in a more level-headed way.

I think in the long run the future could be bright for QPR. But for that to happen the Mittals have to stay on board, and Fernandes needs to become less star-struck. He should stop imagining QPR is part of London''s glamour life and start treating like some provincial club. Pay off the high-wage "stars", get in some hard-working and ambitious young manager, and find somewhere for a new stadium. Much more boring, but it''s a plan that could work.

 

[Cerberus 0]

Shef Canaray,What I find really surprising is their loss for 2011. Does this indicate that they spent their way out of the Championship or does includes some their pre Prem League transfers? I have always been sceptical of the claim that Colin worked miracles to get them promoted.If you have the comparisons, it would be useful to see how much we spent in the same periods to put our relative performance angainst them in the tlast 2 and 3/4 seasons in to perspective.

[shefcanary 2,377]

Hi Louis,

The great Swiss Ramble has just tweeted the following table; it answers your question I believe fairly straightforwardedly, although it only compares the last two FY''s (although our League 1 year would be difficult to use as a comparison - remember we made a whopping loss that year on very much reduced turnover). 

 

Anyway QPaRse were already spending over £11m a year more on players wages in the promotion year - almost two thirds again as us and Swansea.  So in a nutshell, yes, it wasn''t just Colin''s famous pragmatism that got them promoted.  What''s also interesting is the impact our higher capacity and fans did in terms of income (assuming other Premier League linked income was similar which I think it was).  On those figures we are the bigger club but were definitely hampered by external debt (a £4m drain on us in the period).  All good stuff.

 

[Zak Van Burger 0]

[quote user="BroadstairsR"]

As far as Tony and the Hoops is concerned, the most pertinent comment I remember reading about this situation (I think on here) was from the poster when, in answering critical  comparisons between QPR and Portsmouth/ Leeds/Rangers etc. pointed out that these others spent "money they did not have" whilst Fernandes & Co. "spend money they do have."

[/quote]The more accurate comparison then must be QPR and the Binners.Both clubs spent money they do have or more accurately spent money that their respective owners had.Both clubs had a gamble at the Premiership, QPR succeeded at least in getting there, Ipswich look like leaving the Championship at the other end to be honest but the fact is that ME did throw quite a lot of money at that club to begin with in the hopes of promotion.Both clubs have a squad of players that seem to contain more than a fair percentage of "We''re only here for the beer" mercenary type players with little allegiance to anything other than their paypacket.Both clubs have a club debt to their owners of approx £70m as per last available accounts.I guess the one comparison QPR fans won''t want to happen is that as the Ipswich owner has become more disenchanted with the clubs chances of promotion so his hinvestment in the team has dwindled to the current low. Their accounts are murky it''s possible ME is taking more out than he puts in these days we dont know.If QPR are to be relegated the £20-30m per year the owners have put in to balance the books the last two years might well grow into nearer 60-80m pa if they can''t get rid of the high earners quickly.Most tellingly the owners of neither club have converted their massive loans into stock in the club like say Abramovich did at Chavski. QPR do seem to be following the Ipswich model, Fernandes couldn''t get out of F1 fast enough I''d be very worried if I were a Hoops fan.

[Cerberus 0]

Shef Canary,Thanks for sharing this. Very interesting.I always suspected that Colin was full of bull, but this shows exactly how he managed to turn them around. They are royally in trouble if they go down. Even very rich men find losing £100M hard to stomach.I find it reassuring that we are generating £10M than both Swansea and QPR. I also genuinely appluad Swansea for what they have achieved spending less than us on both wages and transfer fees.

[killiecanary 0]

These figures are fascinating, and I agree with Zak - even if Fernandes and company are spending money they do have, the question surely is how long they are going to continue to do so...didn''t fernandes tweet the other week that as soon as he feels he is not the right man for the job then he would move on?

If QPR go down and the owners lose interest then I can see QPR being the next Leeds - stuck with a large number of phenomenally high wage earners who don''t want to be there but who will hang around to pick up the salary for as long as they are under contract, all while the club plummets.

I agree...if I were a QPR fan I would be worried.

But I''m not.