Rosy in the garden .....

[strap]

"Reading FC is dependent on the financial support of Sir John, with a loan made at a low rate of interest that would be hard to replace. However, the club is performing well financially with an annual pre-tax profit of £1.9m last year."

http://www.footballeconomy.com/content/readings-madejski-restructures-debt

Presumably before allowance made for Mr Mad loan/interest repayments, and also pre-Gylfi. Cheered me up a tad after the pathetic display against QPR yesterday.

[Royal Lady]

I don't understand this - if we made a pre-tax PROFIT last year, what was with all the £4million deficit and what was with selling Gylffi? Or am I reading this wrongly?

[TFF]

I don't understand this - if we made a pre-tax PROFIT last year, what was with all the £4million deficit and what was with selling Gylffi? Or am I reading this wrongly?

It's not that tricky. There was a deficit in the budget of £4M. Action was taken. They made a profit.

In a purely business sense, it's admirable.

[Royal Lady]

eh? I thought we still had a deficit THIS year.

[strap]

I don't understand this - if we made a pre-tax PROFIT last year, what was with all the £4million deficit and what was with selling Gylffi? Or am I reading this wrongly?

It's not that tricky. There was a deficit in the budget of £4M. Action was taken. They made a profit.

In a purely business sense, it's admirable.

If you are refering to the sale of Gylfi, that action was taken after the financial results, which was 30th June 2010. I'm not even sure to which financial year the £1.9M profit refers to - I am assuming it is to the year end 30th June 2010, which is the latest possible.

Whichever way you lok at it, £1.9M profit PLUS the sale of Gylfi, means someone is pissing a huge amount up against a wall if we are STILL in a deficit situation. Now of course, it may be that Mr Mad is actually starting to pay himself back his loan and interest - in which case, we will still have a deficit in the budget, but at least the Chariman's loan will be staring to reduce.

[AthleticoSpizz]

yes, and its' simple maths

[Wimb]

Last season was the final one with parachute payments, therefore it's not unreasonable to think that that, coupled with the millions made from Doyle/Hunt/Bikey helped the club to make a small profit. What is worrying is that the club only made £1.9 million despite those extra revenues, and in those circumstances it's not hard to see why we've had to sell Siggy

[Schards#2]

Last season was the final one with parachute payments, therefore it's not unreasonable to think that that, coupled with the millions made from Doyle/Hunt/Bikey helped the club to make a small profit. What is worrying is that the club only made £1.9 million despite those extra revenues, and in those circumstances it's not hard to see why we've had to sell Siggy

So, at the time of the sale of Sigurddson, we were told there was a £4 million black hole, yet we now hear there was a £1.9 million profit from the previous season. Don't recall much suggestion of that at the time.

No doubt there will be another black hole along shortly in time for the start of next season though neccesitating further sales and perpetuating the ever downward cycle.

Brick by brick.

[Wimb]

We were told there was a £4 million hole for THIS year. The accounts where we made a profit were for last year.

If I remember correctly the club was losing about £6 million a season last time around in the CCC before our PL run/Parachute payments, so £1.9 million profit carried over means about a £4 million hole if you assume we'll be losing similar amounts.

Don't understand the confusion really

[Royal Lady]

We were told there was a £4 million hole for THIS year. The accounts where we made a profit were for last year.

If I remember correctly the club was losing about £6 million a season last time around in the CCC before our PL run/Parachute payments, so £1.9 million profit carried over means about a £4 million hole if you assume we'll be losing similar amounts.

Don't understand the confusion really

Except we still had a parachute payment at the end of last season/beginning of this season (whichever way you want to look at it) - so we made a profit LAST year of £1.9 million and, despite having another parachute payment and reducing the wage bill by letting go of Cisse, Matejovsky etc, THIS year, they STILL thought we'd make a £4million loss and had to sell Sig?

[Wimb]

The Parachute payment money would have been taken into last years figures. As I said if you take the last spell in the Championship, we were losing 6 million per season. So with the squad and attendances roughly back to those levels it's fair to assume we'd lose £6 million or so a season, and if you deduct the profit from last year then you're left with a 4 million black hole... which was then filled by selling Siggy.

[Schards#2]

So, just to establish where the goalposts currently are, you are saying that there was no debt at the start of this season but there was an anticipated debt of £4 million by the end of the season?

[Harpers So Solid Crew]

I thought the DEBT was well documented, £8m and about £15m for the hotel, all owed to JM, or about that figure.

[Wimb]

So, just to establish where the goalposts currently are, you are saying that there was no debt at the start of this season but there was an anticipated debt of £4 million by the end of the season?

The goalposts haven't moved, there was a £4m deficit in this seasons budget (or perhaps next 2/3/4 seasons I don't know the club haven't specified) which was then filled by the Siggy sale. I have no idea what the overall club debt was at the start of the season probably in the tens of millions. All the club said at the start of the season was it had a £4 million hole for this year which it's now paid off with the sale of Gylfi.

Just because you turn a profit in one year doesn't mean you can't have a deficit. Hence why I said if the club was losing £6million per year in the Championship before then it's easy to understand where the £4 million comes from, because you deduct the £2m profit we made last year.

What bothers me Schards is that you're clearly a bloke with a decent grasp of finance and yet this issue seems to confuse you/you jump to conclusions

[Yellowcoat]

Glad I have never taken any financial advice from Schards. From his showings on here I am surprised he gets any customers at all.

[Schards#2]

Glad I have never taken any financial advice from Schards. From his showings on here I am surprised he gets any customers at all.

You couldn't afford it sonny.

[Harpers So Solid Crew]

TBF YC, Schards does not offer advice here re his work, what he does is comment on RFC, and whether his views are good or bad they are only a view, and a view on what is released from the club, so I would say we are all slightly mistaken in what we think from what the club release.

[Harpers So Solid Crew]

Glad I have never taken any financial advice from Schards. From his showings on here I am surprised he gets any customers at all.

You couldn't afford it sonny.

If YC is ya sonny then you should have retired a long time ago Schards.

[Schards#2]

So, just to establish where the goalposts currently are, you are saying that there was no debt at the start of this season but there was an anticipated debt of £4 million by the end of the season?

The goalposts haven't moved, there was a £4m deficit in this seasons budget (or perhaps next 2/3/4 seasons I don't know the club haven't specified) which was then filled by the Siggy sale. I have no idea what the overall club debt was at the start of the season probably in the tens of millions. All the club said at the start of the season was it had a £4 million hole for this year which it's now paid off with the sale of Gylfi.

Just because you turn a profit in one year doesn't mean you can't have a deficit. Hence why I said if the club was losing £6million per year in the Championship before then it's easy to understand where the £4 million comes from, because you deduct the £2m profit we made last year.

What bothers me Schards is that you're clearly a bloke with a decent grasp of finance and yet this issue seems to confuse you/you jump to conclusions

Just asking for clarification of facts that you, by your own admission, don't appear clear about either.

[Schards#2]

Glad I have never taken any financial advice from Schards. From his showings on here I am surprised he gets any customers at all.

You couldn't afford it sonny.

If YC is ya sonny then you should have retired a long time ago Schards.

Really? He sounds about 13.