Company Accounts - 31 May 2020

[SheepRanger]

The company accounts to 31st May 2019 were submitted to Companies House last year in Feb 2020. I've been wondering why the accounts to May 2020 have not yet been submitted.

Today an update had been provided to Companies House to confirm that 1.7bln new shares have been created under the reference Loan Conversion.

As we know we have been kept going with loans by Ruban Gnanalingam and it would seem that the club does not have the money to repay one of these and we have failed to get funding from other investors/banks.

It would seem some debt has been written off in favour of shares and my guess is that Ruban's ownership of the club has now increased from the previous 51% and the other investors share ownership has been diluted.

I'm sure this will be reflected in the formal accounts shortly.

[QPRDave]

So, all i wanna know is, are we minted, or are the buckets being polished?

[SheepRanger]

"We" are not minted. The owners are though and can only spend within the confines of FFP and only as long as they are prepared to keep propping the club up. I guess that conversion to shares is basically as good as writing the loan off unless the owners can change things so that the club is making a profit or otherwise increasing in value.

Agreed.

That debt has disappeared off the books but only because the person who provided the loan accepted a greater share allocation instead of the money back. One day that individual, which I assume to be Ruban, will own 100% of a loss making football club!!

But if that person wanted the cash back, we'd be in a huge amount of ####.

[SheepRanger]

In the last accounts the owner(s) were putting in close to £12m a year to keep the club going.

If the £16m Eze transfer payments are spread over four seasons we would have got £4m this season, which wouldnt have even made up for the loss of our £5m a season in ticket sales money which has been lost due to COVID.

The owners are digging deep into their pockets, and I'd be amazed if Dieng wasnt sold in the summer if a decent offer came in.

[Undecided]

I can't see he can presently get any worthwhile amount back. He's options are:

Sell the club - what is the value of his shares given the club have very few valuable assets, who'd want to buy his share?
Put the club into liquidation - who'd buy it, and for how much in a fire sale? Alternatively how much would the assets of the club raise in a fire sale?
Get another backer = same as sell his shares. Remember, all other creditors, tax man, lenders etc., must be paid off before the owners.

I have no idea, but I reckon his losses in the club may give some sort of beneficial tax set off somewhere, somehow?

[Undecided]

Worse case is they just throw in the towel, swallow the loss, and walk away.

[Abseits]

Worse case is they just throw in the towel, swallow the loss, and walk away.

Yeah. People have been saying for about 18 years how Chelsea are gonna be stuffed when Roman gets fed up and withdraws his rubles. I think the key with football is to throw all business logic, normal accounting and financial resilience out of the window - it marches to its own beat.

[Undecided]

Yeah. People have been saying for about 18 years how Chelsea are gonna be stuffed when Roman gets fed up and withdraws his rubles. I think the key with football is to throw all business logic, normal accounting and financial resilience out of the window - it marches to its own beat.

Agreed. Worst case, but unlikely.

[ConorQPR2000]

I think its certainly looking likely that Fernandes will sell his stake in the club to Lakshmi Mittal and let them control the club fully.

I think Mittal has a 20% stake in the club.

[Undecided]

I think its certainly looking likely that Fernandes will sell his stake in the club to Lakshmi Mittal and let them control the club fully.

I think Mittal has a 20% stake in the club.

I'd be surprised by that, I thought Rubens had the majority shares?

[SheepRanger]

I'd be surprised by that, I thought Rubens had the majority shares?

Yes he does and I believe he's the one providing the financing.

[SheepRanger]

The company accounts to 31st May 2019 were submitted to Companies House last year in Feb 2020. I've been wondering why the accounts to May 2020 have not yet been submitted.

Today an update had been provided to Companies House to confirm that 1.7bln new shares have been created under the reference Loan Conversion.

As we know we have been kept going with loans by Ruban Gnanalingam and it would seem that the club does not have the money to repay one of these and we have failed to get funding from other investors/banks.

It would seem some debt has been written off in favour of shares and my guess is that Ruban's ownership of the club has now increased from the previous 51% and the other investors share ownership has been diluted.

I'm sure this will be reflected in the formal accounts shortly.

Companies House has been informed that the new shares have been issued to:

- Total Soccer Growth Sdn Bhd - 874m (Gnanalingam)
- QPR Asia Sdn Bhn - 836m shares (Fernandes)

The people whose shares have therefore been diluted is Sea Dream Ltd (Mittal). It would seem that the Mittals are losing financial interest and both Ruben and Tony are the ones supporting the club.

[Undecided]

Good for them on that, thank goodness.

[Abseits]

I see Leeds posted a loss of £69 million for last season. I have no idea what the EFL limits on FFP are anymore or if Leeds breached them but £69 million does sound like a breach doesn't it????

[ConorQPR2000]

I see Leeds posted a loss of £69 million for last season. I have no idea what the EFL limits on FFP are anymore or if Leeds breached them but £69 million does sound like a breach doesn't it????

I believe you can exclude COVID related costs from your FFP calculation.