Board Writes off 60m of QPR Debt - One for the Tony bashers

[vblockranger]

My understanding is the year we were in the championship, if we had losses of more than £8m we would be liable to a fine, due to us having massive losses the fine is potentially massive.
The owners have written off £70m worth of loans thus in effect injecting equity into the club. This means our losses are only £9m thus a fine will be on £1m being £9 minus the £8m we were entitled to lose.
Clearly the move by the board was to avoid a massive fine and that can only be good.
The concern is whether the owners will attempt to recoup these losses later, say we stay up will they just take £70m back. Adverse effect is money that should be used to build up the team is simply used to pay off losses, noticeable this transfer window no deals were done so losses do have a detrimental effect on how we progress.
£70m losses are huge amounts to simply write off even for the mega rich. The Mittal family stalled at paying an extra £20m or something to pay Briatore for an outright control of the club, seems strange a few years on they would be happy to simply write off a similar amount without recouping due to a folly of poor transfers and high wages.
Also the £70m write off simply artificially inflates what the club is worth, as if sold the owners will sell most likely for what it's worth plus £70m.
I think short term the owners move to write off is clearly good but what else could the club do, we are a small club so can't rely on sponsorship to bail us out like the big clubs. If we did nothing we would have been hit with a massive fine.
However in the long run I don't think it's great as it may mean tv revenue of the future won't be used to build up the squad but instead to pay back to the owners.
If we go down then the owners are less likely to invest and more likely desperate to sell at an inflated price.
Hopefully the new stadium and land investments will be our saviour.

Good post mate and its the "injecting equity" that may be the problem. If our actual loss for that year was £70 million but they have added the £60 million write off as income into profit or loss to only make it seem like we had a loss of £9.8M then surely that has a good chance of breaking FFP rules and a bit of shady/creative accounting to boot. Did our very well respected financial director Rebecca Caplehorn give a reason why she left? wasnt she replaced with someone within Fernandes's business? hmmmmmmmmm...makes you think doesnt it.
FFP is good for football imo and Man City and PSG both look like they are going along with it and will accept fines/restrictions so why should we be any different? Run the club properly or else...simple. Stop running it above its means and attempt to turn into a big club overnight by buying old named players to increase profile and branding. Look how that turned out.

[nasser95]

Good post mate and its the "injecting equity" that may be the problem. If our actual loss for that year was £70 million but they have added the £60 million write off as income into profit or loss to only make it seem like we had a loss of £9.8M then surely that has a good chance of breaking FFP rules and a bit of shady/creative accounting to boot. Did our very well respected financial director Rebecca Caplehorn give a reason why she left? wasnt she replaced with someone within Fernandes's business? hmmmmmmmmm...makes you think doesnt it.
FFP is good for football imo and Man City and PSG both look like they are going along with it and will accept fines/restrictions so why should we be any different? Run the club properly or else...simple.

Who wanted the tv revenue to be used for players anyway? Would rather money move to the owners in the long term if it helps our club on the assumption that we stick with out youth policy

[nasser95]

Good post mate and its the "injecting equity" that may be the problem. If our actual loss for that year was £70 million but they have added the £60 million write off as income into profit or loss to only make it seem like we had a loss of £9.8M then surely that has a good chance of breaking FFP rules and a bit of shady/creative accounting to boot. Did our very well respected financial director Rebecca Caplehorn give a reason why she left? wasnt she replaced with someone within Fernandes's business? hmmmmmmmmm...makes you think doesnt it.
FFP is good for football imo and Man City and PSG both look like they are going along with it and will accept fines/restrictions so why should we be any different? Run the club properly or else...simple. Stop running it above its means and attempt to turn into a big club overnight by buying old named players to increase profile and branding. Look how that turned out.

Also, you are looking at it as negatively as you can really. The club has posted losses of under £10mil. The FL can't impose strict sanctions as a result. Simple. Stop looking for the negative because you want one to exist.

[nasser95]

Read it ginge! It's not even properly worded! It's the ramblings of a bitter illiterate! So by that you can be certain its bowlarks

Looks like V wrote that up, with all the anti tony c R ap in it.

[vblockranger]

Also, you are looking at it as negatively as you can really. The club has posted losses of under £10mil. The FL can't impose strict sanctions as a result. Simple. Stop looking for the negative because you want one to exist.

lol read the thread again. If we truly had a loss of £9.8m for that season then that is fantastic considering. If we only had a loss of £9.8m because the shareholders "gifted" us a £60m injection then that may well be breaking rules and is not so fantastic as it means they are still running the club at a huge yearly loss. If we cant be financially sustainable in the premiership on our own feet then maybe the prem is not where we should be playing football. We wont know if this is the case until the accounts are made public but dont be surprised if the Football League and other clubs protest if it turns out that we are trying to cook the books to get out of paying a fine. Run a club poorly and there should be consequences.

[vblockranger]

Looks like V wrote that up, with all the anti tony c R ap in it.

Nope not guilty and considering the c r ap you come out with most of the time its fairly well written :-)

[dsqpr]

I'm with V Block on this one I'm afraid… call me what you like

Been swallowing too much bull 5hite PR by Fernandes and Co, this isn't any different and this isn't a clear cut as everyone seems.

Do not kid yourselves, These guys are business men, they don't write of £60m because they love the club, are "good" people or are fans!

They've tried to avoid FFP fines and I doubt very much we've heard the end of this…

Once the full accounts have been released (And not the sugar coated PR they've released) we'll know a bit more.

YES its good that they have written off the debt, which is good for QPR whichever way you look at it, but not because they're "nice" people/great guys because they're trying to avoid a BIG fine.

This is an interesting read on the subject:

http://www.financialfairplay.co.uk/l...all-they-seem?

This was indeed an interesting read, thanks for posting it. I guess within the confines of FFP it comes down to accounting convention as to whether the owners are allowed to donate 60m and count it as "Income". I can't help wondering how it would be handled in the accounts if a rich and generous fan who is not an owner decided to donate 60m to the club. Would that be income? If not, then what would it be?

Anyway, all of this discussion is pointless. The key point is that FFP is illegal. Tony is trying hard to work with it because he is a nice chap but the FL are obviously having none of it. I wish he'd just spit in their eye, call his lawyer, and do the football world a favour by challenging this whole protectionist racket in court. Chelsea didn't get where they are today by living within their means!

[nasser95]

lol read the thread again. If we truly had a loss of £9.8m for that season then that is fantastic considering. If we only had a loss of £9.8m because the shareholders "gifted" us a £60m injection then that may well be breaking rules and is not so fantastic as it means they are still running the club at a huge yearly loss. If we cant be financially sustainable in the premiership on our own feet then maybe the prem is not where we should be playing football. We wont know if this is the case until the accounts are made public but dont be surprised if the Football League and other clubs protest if it turns out that we are trying to cook the books to get out of paying a fine. Run a club poorly and there should be consequences.

Ok, so why are you looking for reasons we wouldn't have lost only £9.8mil? Why do you need to question it because of your vendetta against the board.
You seem to really want this club to rot away in the Championship. Do you have no ambition or something like that? The club has potential to grow from where it is yet all i see is you yammering on about how you would prefer us being a championship club, showing no growth etc.
Finally, the club hasn't been run as poorly as you think, what with the fact that in the four years the owners have been here, we have been in the prem for 3. I suppose for you though, if we haven't been in the champ for all four years, the club isn't as sh1te as you seem to be looking for it to be.

[TBLOCKRANGER]

Good post mate and its the "injecting equity" that may be the problem. If our actual loss for that year was £70 million but they have added the £60 million write off as income into profit or loss to only make it seem like we had a loss of £9.8M then surely that has a good chance of breaking FFP rules and a bit of shady/creative accounting to boot. Did our very well respected financial director Rebecca Caplehorn give a reason why she left? wasnt she replaced with someone within Fernandes's business? hmmmmmmmmm...makes you think doesnt it.
FFP is good for football imo and Man City and PSG both look like they are going along with it and will accept fines/restrictions so why should we be any different? Run the club properly or else...simple. Stop running it above its means and attempt to turn into a big club overnight by buying old named players to increase profile and branding. Look how that turned out.

Agree, "injecting" cash to get round it will need explaining, like with anything QPR related nothing is straightforward. I hope all the time limits have been met. You would have thought since taking over wealthy owners with 2 premiership TV revenue payments and 1 parachute payment plus no noticeable infrastructure cost have to end up writing off £70m, doesn't fill you with confidence.
With all the players that have come in, we only have two of note that have any resale value Green and CA.
I accept the board are lovely people and my ST isnt a £1000 etc but if another club was run like us I think we would be far from impressed.

[vblockranger]

Ok, so why are you looking for reasons we wouldn't have lost only £9.8mil? Why do you need to question it because of your vendetta against the board.
You seem to really want this club to rot away in the Championship. Do you have no ambition or something like that? The club has potential to grow from where it is yet all i see is you yammering on about how you would prefer us being a championship club, showing no growth etc.
Finally, the club hasn't been run as poorly as you think, what with the fact that in the four years the owners have been here, we have been in the prem for 3. I suppose for you though, if we haven't been in the champ for all four years, the club isn't as sh1te as you seem to be looking for it to be.

lol calm down deary. First of all why on earth do you take anything spun on the official site or Uncle Numpty's twitter account as gospel? there maybe another side, you never know..... Second we was in the prem when this lot took over. The first 2 seasons we were embarrassing and i mean truly embarrassing. The season in the Championship and up to Harry left was the most boring and non-productive football ive seen since you were in nappys and thirdly i dont care what league we play in. I would rather win a few extra games in a lower league than be a fan that creams himself over watching other teams star players. Dont care what league as long as we can compete.

[vblockranger]

Agree, "injecting" cash to get round it will need explaining, like with anything QPR related nothing is straightforward. I hope all the time limits have been met. You would have thought since taking over wealthy owners with 2 premiership TV revenue payments and 1 parachute payment plus no noticeable infrastructure cost have to end up writing off £70m, doesn't fill you with confidence.
With all the players that have come in, we only have two of note that have any resale value Green and CA.
I accept the board are lovely people and my ST isnt a £1000 etc but if another club was run like us I think we would be far from impressed.

Spot on T and i agree that apart from a few from the 50 (or is it 60 now) players that have been brought in over the 4 years most of them have been wasters and losers. All that money and not a lot to show for it is there? (slosh of paint in the Ellerslie bogs apart that is)

[Kevin Mcleod]

Fer no good then?

[vblockranger]

Fer no good then?

If he's gets in our top 3 current players then you can see why we are where we are. Would he get into Burnley's or Sunderlands starting 11 even? not so sure. Rob Green, Charlie erm and then i am struggling tbh. The Chileans if you count loanees. Very poor squad we have ended up with after all that money spent and all them players incoming/outgoing. At least the current lot are starting to (finally) play like a team and not a bunch of poor individuals.

[Kevin Mcleod]

Not being funny but sometimes it feels like we are arguing about our beloved rangers on a Chelsea forum! Comments like 'hope the chumps lose a load of money and look like the fools they are' etc! I could never say that about anyone trying to do their best for the club, the be it a manager player or the bloke giving the ellerslie sh itters a coat of paint ! Oh and fer is a superb player who would walk in nearly any club not in the top six! Come on v ffs! Mutch is proper toilet and he walked straight into a flying palace side

[dsqpr]

Spot on T and i agree that apart from a few from the 50 (or is it 60 now) players that have been brought in over the 4 years most of them have been wasters and losers. All that money and not a lot to show for it is there? (slosh of paint in the Ellerslie bogs apart that is)

Many players have been brought in and proved to be expensive failures. That is the fault of the managers who brought them in, not the Board. If you want to criticize the Board then a fair one would be that they made too much money available to these managers. I remember your posts arguing vehemently against the Board making money available for new players at the time because you would have much preferred for us to do a Derby and just go straight back down without any investment but with the PL money in our pocket.