Club finances

[stainrodisalegend]

im not defending our board but the study reported on the beeb today and elsewhere - see below - shows that far from making a profit our board are again likely to run up big running costs and losses in the premier league with 68% of income going on wages. I've read on here comments like Jimmy Bullard "wouldn't cost a penny", conveniently ignoring that 40k a week wages translates to £2m a year - and that's just one player.

it also shows that gate receipts only account for about a third of revenue - so harsh though our price rises are they will only really provide a drop in the ocean when it comes to paying for the running of QPR.



The proportion of income that Premier League clubs spend on wages hit a record 68% in 2009-10, a report into football finances by Deloitte says.

While Manchester United spent 46% of its revenue on pay, rivals Manchester City splashed out a massive 107%.

Chelsea again topped the wages bill, as they have done every season since 2002-03, at £174m.

"This new high is worrying, something Uefa's financial fair play rules should address," said Deloitte's Dan Jones.

It comes as the Deloitte report shows Premier League revenues increased by 2% to exceed £2bn for the first time in the 2009-10 season.

Continue reading the main story “
Start Quote
There is a clear correlation between survival in the top rank and a willingness and ability to pay those humungous players' salaries”
End Quote

Robert Peston

Business editor, BBC News

--------------------------------------------------------------------------------
Read Robert's blog in full
In depth: Business of sport
'Middle tier'

Mr Jones said there were signs of wage discipline in clubs near the bottom of the Premier League, while those near the top earned such large revenues that it helped them keep the wage ratios down.

"The problem is with the middle tier of clubs, those who are neither chasing a Uefa place or facing relegation," said Mr Jones.

"And of course Manchester City and Chelsea are going to need to get wages under control for the financial fair play rules."

Meanwhile, Championship clubs are set to introduce their own financial fair play system.

Football League chairman Greg Clarke says Championship clubs have voted in principle to match Uefa's break-even rules.

There is also a proposal that League One clubs move towards the introduction of the salary cap currently in force in League Two, where teams can spend a maximum of 60% of their turnover on wages.

[themodfather]

how VERY DARE YOU...they SAVED US
we were gonna go out of existence
there were no other bids on the table nor any other agreements with a consortium to take over
these are great business men, to spend £60-70m on one flat is ok
to instal chandeliers at qpr for £10k each and BE PROUD of it is ok
debts risen from say £15m - to where, say £35m..it's ok
to announce a deal worth pittance as £3.5m
as a "puff" to con fans, leading to a fa hearing and all that jazz....ok

if i owed the bank £10 and someone "helped" me and left me £100 owing to the bank, well...i'd be well chuffed! cheers.....

[stainrodisalegend]

completely failed to understand or i suspect even read the report - as i said at the start i wasnt defending the board, i was raising a point about player wages but carry on ranting if it makes you happy

[haqpr1963]

The thing that makes it even more scary is this.....

Belfast Telegraph/Ian Herbert

Players the ultimate winners as Premier League salaries hit record heights

The premier League's annual revenues have smashed through the £2bn barrier for the first time, though the inexorable rise in players' wages mean clubs are paying out more than ever before — £1.4bn — to reward those in whom they are placing their faith on the field, Deloitte's annual review of football finance reveals today.

Using figures for the 2009-10 season — the most recent available — the report reveals that the increase in revenues, with television money now exceeding £1bn for the first time, have gone straight back out on wages with a record 68 per cent of Premier League revenues now heading into players' pockets.

The collective wage bill has increased by £64m in just 12 months, taking pre-tax losses of the Premier League clubs after debt servicing and player costs to a record £445m, which means that compliance with Uefa's new financial fair play (FFP) regime looks a huge task for some.

Yet it is the Championship which the Deloitte report implies should give most cause for concern, underlining why the Football League now intends to introduce its own FFP system.

The Premier League's wage inflation and collective debt of £3.5bn are at least offset by rising television money but in the second tier, where Deloitte sees a colossal 88 per cent of revenue going on players, a 25 per cent reduction in live television rights from the beginning of the 2012-13 season spells serious danger.

Only three Championship clubs reported a pre-tax profit for the year under review, while 14 in the division lost £5m or more in the desperate drive to reach the golden land of the Premier League and overall losses were a record £133m. Championship clubs are spending £4 for every £3 they generate in income.

“Financial history does not bode well,” said Alan Switzer, director in Deloitte's Sports Business Group, said of the second tier. The Football League's calculation that 80 per cent of player contracts expire before the new Championship TV deals start at least give clubs time to reduce their cost base.

With some second-tier clubs paying out much more in salaries than they earned, Blackpool spent 134 per cent of revenue in their promotion campaign — set against their frugality last season in the top tier.

Bristol City, Queens Park Rangers, Ipswich and Preston all paid out at least 108 per cent of revenue on wages.

In the Premier League, only Manchester City exceeded the 100 per cent mark in their breakneck pursuit of Champions League football.

Deloitte — who are accountants to the Premier League and some of its clubs — observe that the “trophy asset” model of club ownership “remains prevalent as competitive pressure to win outweighs any collective desire to limit wage costs.”

But the biggest factor influencing the future landscape is FFP, Deloitte believes. Dan Jones, partner of the Deloitte Sports Business Group.

The review observes that the drive towards FFP, which obliges clubs with income and expenses over €5m (£4.46m) to limit losses to €45m (£40m) for the seasons 2013/14 and 2014/15, and less in future seasons, “will correct the financial situation, starting from the top.”

Despite the wage inflation, Deloitte cautions against any forecast of football's financial demise.

“Top flight football has shown remarkable recession resistance,” Mr Jones said.

The Premier League sides' collective operating profits — before player trading — are £101m, while the Serie A clubs collectively lost £110m in the 2009/10 season and France's Ligue 1 £102m.

The Football League's own achievements in attracting fans and new financial revenues — which are often overlooked — are reflected in figures showing that the Championship is the third best attended league in Europe, ahead of the top divisions in Spain, Italy and France.

The TV rights deal for the Premier League (including overseas rights) is the key commercial component — increasing from £2.8bn to £3.6bn — and while the operating profits of the Premier League have increased by £4m to £83m, the Bundesliga — the only one of the elite European leagues which is more profitable — has been far less resilient, with its own profit figure falling by 20 per cent to £113m.

Wages, rather than transfer spend, have been the key barometer of whether a club is likely to succeed for several years now, though this year's Deloitte Review reveals a hardening of that trend.

Despite the collective disposal of £37m of money by Liverpool and Manchester United on Sunderland's Jordan Henderson and Blackburn Rovers defender Phil Jones in the past 24 hours, gross transfer spending has — significantly — fallen by more than 20 per cent from the record £713m in 2008/9 to £559m in 2009/10.

This might reflect the fact that credit is less likely to be available to clubs in the current financial climate than it was two or three years ago.

http://www.belfasttelegraph.co.uk/sp...#ixzz1Ol4E7g7D

Now I am guessing that wages didn't drop last year and they are deffo not going to drop next season. So what exactly does the ST rise pay for?

I am guessing that the debt to the club (notice I said the club and not the owners) is unlikely to decrease in the near future....

[rangerforevereastcote]

completely failed to understand or i suspect even read the report - as i said at the start i wasnt defending the board, i was raising a point about player wages but carry on ranting if it makes you happy

stainrod your spot on, been saying similar for days yet keep getting accused of being a board lover!!

reality
our wage bill for next season all figs approx

player not inc manager coach staff etc etc

25 players x £25k avg = £625k per week x 52 weeks =32.5 mill not inc all other staff and other players not inm 25 man squad

our ground lets say 18000 x avg £40 (kids oaps etc)= 720k =£13.6 mill = net defecit £18.9 mill

we get 40 mill for the first year in prem , we are not going to make any money in the prem and the idea that we are paying for bernies boardroom is fanciful

[paulmason]

stainrod your spot on, been saying similar for days yet keep getting accused of being a board lover!!

reality
our wage bill for next season all figs approx

player not inc manager coach staff etc etc

25 players x £25k avg = £625k per week x 52 weeks =32.5 mill not inc all other staff and other players not inm 25 man squad

our ground lets say 18000 x avg £40 (kids oaps etc)= 720k =£13.6 mill = net defecit £18.9 mill

we get 40 mill for the first year in prem , we are not going to make any money in the prem and the idea that we are paying for bernies boardroom is fanciful

What about the money from the C-Club, W12 Club, Private Boxes, Sponsorships, Super Store and all the other commercial activities and does anyone know if the C-Club revenue is Flavio's or is it part of the commercial revenues for QPR FC ?

[rtone]

good god, have you people only just realised its your 'hero's' that are pricing you and your kids out of football? out of all the posts slating the board for putting up prices, what about players like Rowlands, 13 grand a week, barely kicked a ball in 2 years, but would have collected his promotion bonus in may, laughing all the way to the bank? they are killing footbal, not chairmen

[rangerforevereastcote]

What about the money from the C-Club, W12 Club, Private Boxes, Sponsorships, Super Store and all the other commercial activities and does anyone know if the C-Club revenue is Flavio's or is it part of the commercial revenues for QPR FC ?

i can couter that with what about warnock curle all the other coaches the stewards physios, staff youth teams youth team coaches etc etc

[rangerforevereastcote]

i can couter that with what about warnock curle all the other coaches the stewards physios, staff youth teams youth team coaches etc etc

plus all the other players not in 25 man squad , people like vine on over a mill and all the other players not in first team

[haqpr1963]

good god, have you people only just realised its your 'hero's' that are pricing you and your kids out of football? out of all the posts slating the board for putting up prices, what about players like Rowlands, 13 grand a week, barely kicked a ball in 2 years, but would have collected his promotion bonus in may, laughing all the way to the bank? they are killing footbal, not chairmen

Ah, but is the players or the people who are giving them the long contracts on good wages.

Look at Borrowdale, and a fair few others.

The board are still responsible, no ifs no buts.....

[haqpr1963]

plus all the other players not in 25 man squad , people like vine on over a mill and all the other players not in first team

Yeah but the staff are actually doing a good job. Then you add the players outside the first team squad.

Now can you blame Vine, etc for hanging on if they are getting a good wage for doing nothing. Perhaps we have to look elsewhere....

[James1979]

Ah, but is the players or the people who are giving them the long contracts on good wages.

Look at Borrowdale, and a fair few others.

The board are still responsible, no ifs no buts.....

Borrowdale is the exception. Vine and hall for example were very good players at time of signing. We were destined for league 1 and needed to get some decent players in. In order to attract them we needed to offer bigger wages and long contracts

[rangerforevereastcote]

Borrowdale is the exception. Vine and hall for example were very good players at time of signing. We were destined for league 1 and needed to get some decent players in. In order to attract them we needed to offer bigger wages and long contracts

yes we forget we were chuffed when we got vine, that american c@@@ ruined his career whilst playing for us so i suppose you cant blame him for not wanting to go and see out his contract as hell never get one like that again,

[Gtleighsr3]

Why do i feel like we should be shopping at harrods at least next but look like we wont even make primarks!

[conners]

im not defending our board but the study reported on the beeb today and elsewhere - see below - shows that far from making a profit our board are again likely to run up big running costs and losses in the premier league with 68% of income going on wages. I've read on here comments like Jimmy Bullard "wouldn't cost a penny", conveniently ignoring that 40k a week wages translates to £2m a year - and that's just one player.

it also shows that gate receipts only account for about a third of revenue - so harsh though our price rises are they will only really provide a drop in the ocean when it comes to paying for the running of QPR.



The proportion of income that Premier League clubs spend on wages hit a record 68% in 2009-10, a report into football finances by Deloitte says.

While Manchester United spent 46% of its revenue on pay, rivals Manchester City splashed out a massive 107%.

Chelsea again topped the wages bill, as they have done every season since 2002-03, at £174m.

"This new high is worrying, something Uefa's financial fair play rules should address," said Deloitte's Dan Jones.

It comes as the Deloitte report shows Premier League revenues increased by 2% to exceed £2bn for the first time in the 2009-10 season.

Continue reading the main story “
Start Quote
There is a clear correlation between survival in the top rank and a willingness and ability to pay those humungous players' salaries”
End Quote

Robert Peston

Business editor, BBC News

--------------------------------------------------------------------------------
Read Robert's blog in full
In depth: Business of sport
'Middle tier'

Mr Jones said there were signs of wage discipline in clubs near the bottom of the Premier League, while those near the top earned such large revenues that it helped them keep the wage ratios down.

"The problem is with the middle tier of clubs, those who are neither chasing a Uefa place or facing relegation," said Mr Jones.

"And of course Manchester City and Chelsea are going to need to get wages under control for the financial fair play rules."

Meanwhile, Championship clubs are set to introduce their own financial fair play system.

Football League chairman Greg Clarke says Championship clubs have voted in principle to match Uefa's break-even rules.

There is also a proposal that League One clubs move towards the introduction of the salary cap currently in force in League Two, where teams can spend a maximum of 60% of their turnover on wages.

Stainrod, very good post.

Would also think that we will also be held to ransom because of who are owners are.

Fans are getting downbeat, yet all we have done is miss out on two completely unproven strikers (that are unproven at Premiership level)