6.5 million loss!!!!

[Pool and Darts]

profit on interest of £1.5M and bought Seol for £1.5M.

Interesting. Except we also bought Sodje for £500k and Seol's price was £1M rising to £1.5M wasn't it? Oh and of course there are the loanees and the bids of £4M that we made that were turned down. And the reputed bid of £3M odd for Lescott and whoever... (was it Seol?)

Club seems healthy enough. Mr Mad got us where we want to be and we're doing well, I can't see us folding and ceasing to exist so I frankly couldn't give a oxf*rd.

exactly.

These are just figures that are announced officially to the stock market and the inland revenue which, amongst other things, affect the amount of tax the club will pay.

It's called playing the system. Long may we use it to our advantage!!

[Dirk Gently]

And, of course, declared losses in one of JM's companies will off-set the tax liability of other companies in the group which are making real profits.

[readingfc_4_life_and_beyo]

I give up on Business Studies

[peeping_bernal]

how many posts did it take for someone to realise it was 04/05 season the figures were for, and this was no shock as it was public knowledge the club was losing money and 'RJM' was bankrolling it. The club will owe him for many years as he has funded our rise from his own pockets. Panic over

[Boston Royal]

I am aware but this makes little difference. If he demanded the loans were repaid now, the club in its current position couldn't pay therefore would need to secure bank loans to pay him back. Therefore loans would still be in place for the same value.

If the club could afford to pay him back with spare cash sitting in a bank (no chance but for the sake of argument), the current assets of the club would diminish which would again reduce the price someone was willing to pay.

If he wrote off the loans, the value of the club would shoot up but then he would have lost the money that he had in place in the loans.

This is pretty much spot on (I believe). Assume for simplicity JM owns all of the debt and equity (= share capital) of RFC. Then whether he writes off loans or makes new loans to the club makes little difference. He owns the entire cake; how it's sliced up between debt and equity makes no difference to the size of the cake nor his share (which is 100% of the cake). Just as if you mortgaged part of the house to yourself and paid yourself interest, it would make no difference to your overall wealth.

The one complexity is I think he only owns 85% of the equity. So if he wrote off a 1M loan, he'd lose 1M and only gain 850,000 from his equity stake in the company being worth more.

Does the loss of 6.5 million include the costs of building the extension to the hotel? That must run to a fair chunk of the money? I guess it should do as the company is the football club and hotel.

I don't think these costs contribute to the loss. Paying for an extension won't be accounted for as a loss. All you're doing is exchanging one asset (cash) for another (bigger hotel) so it doesn't affect the profit and loss account (unlike items such as wages).

As you can tell, I lead a very exciting life

[Silver Fox]

His interest on his loans to the club last year was £1.5M. Coincidence that Seol cost 1.5M?

Am I being stupid or does this mean that the interest Bob collected on the loans he then coughed straight back up for Seol?

What a top bloke and a succesful business man at that!

[Einstein agogo]

i look at the assets and fixed assets of nearly 50 million ..compared to debts of 30 million means we are doing VERY WELL.
the latest accounts are for the 2004-2005 season , next accounts will be for our promotion season , then in 2 years you will see this season accounts... which will be far healthier....

[Corky341]

On top of all that, we're playing some entertaining football too, and confusing some 'top pundits' along the way.

[Wycombe Royal]

If Sawyers Left Arm has just received the latest accounts then these will be for the year to 30/6/2006. The ones that Poohs Pure posted are only up to 2005. I may be wrong but that is how I read it (hence why the loss figures are different.

Maybe Sawyers Left Arm could provide some more details on the account he has received?

[Greenwich Royal]

ROBERT JOHN MADEJSKI

MAD BOB!

[Nick Shorey my Lord!]

Had the accounts today and that is the loss for last year. I find this astounding but what is more incredible is the £18,000 the chairman received for the use of the training ground. Laughable! This man is touted as the hero of Reading but looking at things like that just reminds me that he is in fact a BUSINESS MAN and don't forget it!

here are the latest set of brief accounts on our works internet search jobber

Company Reg No: 03889049
Company Name: THE READING FOOTBALL CLUB (HOLDINGS) PLC
Registered Address: MADEJSKI STADIUM
JUNCTION 11 M4
READING

RG2 0FL
Telephone No:
Date of Incorporation: 06/12/1999
Parent Company:
Parent Company Reg No:

--------------------------------------------------------------------------------

Type of Company:
Principal Activities: A group engaged in the operation of a football club and the provision of hotel and leisure related facilities.
Sic Codes: Operation OF sports arenas AND stadiums
Licensed hotels AND motels

Credit Score: 47
CCJ Flag: N
Company Secretary: BRYAN STABLER

--------------------------------------------------------------------------------

Company Directors: IAN MICHAEL WOOD SMITH
ROBERT JOHN MADEJSKI

--------------------------------------------------------------------------------

Date of accounts: 30/06/2005 30/06/2004 30/06/2003

No of weeks: 52 52 52

No of employees: 438 391 403

('000) ('000) ('000)

Total sales: 15118 15590 14903

Pre tax profit: -4,554 -1,856 -1,616

Fixed assets: 47,110 47,138 47,810

Current assets: 2,841 2,667 2,476

Net assets: 13,392 17,499 19,173

Long term liabilities: 15,776 15,329 15,146

Current liabilities: 36,559 32,306 31,113

Net worth: -5,102 -403 1,055

all amounts are in Pounds Sterling (GBP )

and the fc ltd

company details
Company Reg No: 00053703
Company Name: THE READING FOOTBALL CLUB LIMITED
Trading Address: Madejski Stadium
Junction 11 M4
Reading
RG2 0FL
Telephone No: 01189681100
Date of Incorporation: 11/08/1897
Parent Company: THE READING FOOTBALL CLUB (HOLDINGS) PLC
Parent Company Reg No: 03889049

--------------------------------------------------------------------------------

Type of Company:
Principal Activities: A professional Football League club.
Sic Codes: Other sporting activities NOT elsewhere classified

Credit Score: removed
CCJ Flag: removed
Company Secretary: BRYAN STABLER

--------------------------------------------------------------------------------

Company Directors: IAN MICHAEL WOOD SMITH
ROBERT JOHN MADEJSKI

--------------------------------------------------------------------------------

Date of accounts: 30/06/2005 30/06/2004 30/06/2003

No of weeks: 52 52 52

No of employees: 335 290 308

('000) ('000) ('000)

Total sales: 9915 10500 10187

Pre tax profit: -5,039 -2,238 -1,832

Fixed assets: 31,297 30,775 30,816

Current assets: 5,508 6,007 5,856

Net assets: 14,449 19,041 21,085

Long term liabilities: 30,394 29,946 29,753

Current liabilities: 22,356 17,741 15,587

Net worth: -17,215 -11,932 -9,994

all amounts are in Pounds Sterling (GBP )

as you can see the year end is June (which would make sense as the seasons ends in may) so not sure what accounts you have now??

Whilst company accounts are public knowledge, I'm pretty sure that posting the credit score is private. You may want to adjust your post.

[Einstein agogo]

i didn't notice that..christ he is IN BIG TROUBLE

[Big Ern]

And, of course, declared losses in one of JM's companies will off-set the tax liability of other companies in the group which are making real profits.

Exactly. JM has been using RFC as a tax loss for years.

[Berthwaite]

And, of course, declared losses in one of JM's companies will off-set the tax liability of other companies in the group which are making real profits.

Exactly. JM has been using RFC as a tax loss for years.

I've said it before, but losing money is not profitable.

If JM can offest his losses on RFC against profits he makes in other operations, then good luck to him. The fact is he loses on RFC.

This club would be in no better position than Oxford or Swindon without his years of investment, and I'm enjoying where we are today, thank you.

[Dirk Gently]

And, of course, declared losses in one of JM's companies will off-set the tax liability of other companies in the group which are making real profits.

Exactly. JM has been using RFC as a tax loss for years.

I've said it before, but losing money is not profitable.

If JM can offest his losses on RFC against profits he makes in other operations, then good luck to him. The fact is he loses on RFC.

This club would be in no better position than Oxford or Swindon without his years of investment, and I'm enjoying where we are today, thank you.

No-one's arguing with that - but the fact is that the acytaiul amount that he's subsidised the club by is, in reality, a lot less than many people think and a lot less than JM makes out in public.

[Royal With Cheese]

This club would be in no better position than Oxford or Swindon without his years of investment, and I'm enjoying where we are today, thank you.

No-one's arguing with that - but the fact is that the acytaiul amount that he's subsidised the club by is, in reality, a lot less than many people think and a lot less than JM makes out in public.

Mad Bob's so modest too, hardly ever mentions his contributions in public.

[RoyalBlue]

Whilst company accounts are public knowledge, I'm pretty sure that posting the credit score is private. You may want to adjust your post.

I thought credit scores were available to any organistion/business prepared to pay the fee to get them?

[Joe]

Now, this thread seems to be verging on the ridiculas, people berating the fact tht JM takes some money from the Club. For what it matters i think JM could pay himself everything the club has and he could be justified in doing it. Without JM this club would be nothing, if even not exist there would be no stadium there would be no players. Without him we would be nothing and nowhere and to complain at him making a profit is ludicrous. The club owes everything to him and a few million is probably not enough.

[The 17 Bus]

Of course the club is only here because of JM, the previous 100 odd years count for nothing, and nor does any money the fans may have put in over the years supporting the club, rich benefactors really only started to pile in when there was a change in revenue streams from television and new technology, in the past very few put in any as much as JM, and the like.

[Forbury Lion]

Does the loss of 6.5 million include the costs of building the extension to the hotel?

No, that would have been capitalised as an asset, not affecting profit and loss, only cashflow.


You can make a profit with no cash to show for it.
Similarly, you can make a loss whilst having stacks of cash in the bank.