2009 Accounts - a summary

Many thanks QPRDad

This is much appreciated.

I guess the questions out there (that I can think of):

1) Confirming that we lost almost 19 million last year

2) Trying understand how if we lost 19 million last year, how come our debt only went up an additional six million? (Is that because the owners bought more shares/or invested more?)

3) Our total debts are now 35 million?

4) If our net assets (primarily Loftus Road) are outweighed by our liabilities, is there any problem with us continuing to operate?

5) Given what we know about gates, players at QPR, signings over the last year, can one (would you care to) extrapolate what our loss might be in June 1, 2009-May 31, 2010 period? It would seem logical to assume it would not be radically less?

Thanks for the summary, much appreciated.

That is correct.

They can either keep buying new shares, or make loans either personally or via other companies under their control e.g. Sarita Capital or Amulya Property. These loans may be converted into shares at any time.

You will recall Abramovitch (spl!) coverting large loans to Chelski, into shares last year!

It is better to not have loans and to have a substantial share capital. The reasons being:

- Stonger balance sheet
- Locks in the loans e.g. cannot get repaid, as they are not debt.

There are other reasons but those are the two important ones.

Thank you for your kind words, and for the invitation to post - As you are aware, I do not hold certain people within QPR or other MB's (without mentioning any names!!) in such low esteem as the majority (including yourself) on here, so I'm not at all sure that I'd fit in!

However, in the post 'Orange Donut' period I accept your kind offer!

No problems at all, it's nice that it has been appreciated. I know that quite a few people are not too sure about what exectly the figures were saying, so I thought that I'd do my bit to help. If you or any other poster has any accounts based queries as regards to QPR I'll always try and help.

Re: Scott - I tipped hm over the £1,500 mark! - not sure how his training is going though!

Hi CPR, only just signed back on since Friday, no objections to listing the original post below. I would suggest following the link though, as there's been a 'sensible' Q & A over quite a few pages!... anyway:

I've reviewed the 2009 accounts as recently published and I thought that I would summarise them hopefully in an easy format so that everyone is aware of what they are saying:

QPR Football & Athletic Club Limited (Club) is a wholly owned subsidiary of QPR Holdings Limited (Holdings).

Holdings has published accounts which include both Holdings and Club - I therfore only summarise Holdings, which includes Club as follows: all values are £000 i.e. £8,600,000 (8.6 million is written as £8,600)

Turnover - £14,822
Costs of sale - £25,633
Admin costs - £6,563
Player registrations - £218 Profit (i.e. income, not a cost)
Interest received - £63
Interest paid - £1,731
Corporation tax paid - £nil
Adjustment on revaluation
of LR - £2,104* (a cost)

Overall LOSS for the year £20,928

*LR was shown in the accounts as £23,354 but was revalued at £21,250 on 31.5.09


On the balance sheet, all the assets are:

Player registrations (transfer fees paid) - £6,693 these are reduced in value on a straight line basis over the players contract. i.e. £2m paid for a 2 year contract, will be worth £1m after a year. The write off is a cost of sale.

Player Registrations - £6,693
Land and buildings - £21,250
Plant and machinery - £229
Fixtures & Fittings - £15

Stock - £269
Trade debtors - £866 ( money owed to the club i.e. sale of players etc)
Vat - £16
Other debtors - £231
Prepayments - £78
Cash in bank - £217

TOTAL of ASSETS - £29,864

On the balance sheet, all the liabilities are:

Loans - £500
Overdraft - £3,295
Trade creditors - £3,315 (money the club owes)
Transfer creditors - £1,043
Tax - £1,466 (tax on players wages etc)
Accruals and deferred income - £4,911 (mostly season tickets paid for i advance i.e. the club owes the value of the games not played)

LIABILITIES - due in less than one year - £14,530

Add to this loans due after one year - £21,103*

TOTAL LIABILITIES - £35,633


TOTAL ASSETS Less: TOTAL LIABILITIES IS - (£5,769)

Loans etc in the accounts include the following:

Sarita Capital investments - £8,600 (interest rate is 7% and is repayable on demand)
Amula Property - £10,000 (interest rate of 8.5% and is sucured by a charge on all of the assets of the club and an option over LR)
Football league - £503 (interest free)
A Caliendo - £2,000 (repayable by 28.2.11)

There are no details of who has control of the company - even though I think that it is a legal requirement!

Please feel free to ask me any questions if you are not sure about anything!

Quality, qprdad. That does make sense.

When I heard about the £18 million, and the £15 million in shares, in my simplicity I imagined that one of the wide boys had simply done a Glazer, bought himself some shares, and charged the entire cost to the Club.

So a £3 million loss was turned into £18 million.

But they REALLY lost £18 million? In a single season! We are in the Champions League, of course, but nonetheless, I am more stunned even than I thought I was.

Not that it makes any difference to the size of the hit the Club can expect to take whether the £15 million is added to the £35 million debt or not.

Lenders and creditors are under no obligation to call in their loans. So even a £50 million debt means nothing if the investors are willing to take it on the chin and write it all off.

Certainly, the balance sheet looks better when they come to sell, but that will profit the sellers, not the Club. Man Utd's balance sheet showed no losses and no debt until the deal was done, and the entire cost of buying them out was charged to the Club.