Club Financial Statement

[Big Foot]

Not read any of this thread so potentially been commented on before; but I read the EP today.....nice to see STAR helping the club with PR

[Forbury Lion]

what does 7.5 Million investment on club infrastructure last season entail ?.

Hotel.

It has an awesome media suite so we can declair our losses every couple of weeks or so.

DO YOU SEE?

I wonder who owns the building company who carried out the construction of the media suite and other works?

[Harpers So Solid Crew]

No idea here Forbes, do you have the name of the construction companies used, because i cannot find it anywhere.

[Branfoot Out]

I might still be missing something but has anyone successfully explained the following yet:

How do the net transfer figures add up? Is the money for players sales during the PL years included (Kitson, Shorey, Sonko etc.)? Is there a clear breakdown of this?

What exactly was the large investment made on players durin 2005/6? Lita for £1m? And?

A terrific piece of spin spin spin anyway. Love the last paragraph particularly..

[Barry the bird boggler]

I might still be missing something but has anyone successfully explained the following yet:

How do the net transfer figures add up? Is the money for players sales during the PL years included (Kitson, Shorey, Sonko etc.)? Is there a clear breakdown of this?

What exactly was the large investment made on players durin 2005/6? Lita for £1m? And?

A terrific piece of spin spin spin anyway. Love the last paragraph particularly..

1m for lita
250? for gunnarsson
500? for halls
0 for stack
0 for makin
78k for doyle
0 for long
baradji loan
0 for chuckwinyely

so thats approaching 2m which for "cheap option" reading was a substantial investment

[Rev Algenon Stickleback H]

funnelling funds to the hotel?

I think this is a big part of it.

"funnelling" implies some kind of underhand movement of funds. The hotel makes money. The club is not subsidising the hotel.

We built a rather large entension to the hotel though, and that costs rather more than buying a shed from Wickes.

[yappy]

Im a bit confused as to what would've happened had we not gone up when we did. If we'd lost money in the 2 previous seasons and £6.5mil the year we did go up, surely if we hadn't gone up we would've had to cut the cloth?

Also, with all the sales and wage cuts this season, does this actually mean were going to run at a profit this season? If we stay up this season and make a profit, does this mean our premiership experience was a great success considering were back to historically were we've been for the majority of our experience, but in a better financial position, therefore in a better state for the long term?

[Wycombe Royal]

IWhat exactly was the large investment made on players durin 2005/6? Lita for £1m? And?

It depends if they are including things like signing on fees for new contracts, etc in their "large investment".

[Yellowcoat]

What possibly confuses is that transfer headline figures in the press are taken as gospel (in particular by those seeking an axe to grind) but for football accounting purposes the true figures are amortised over the length of contracts. This no doubt is the cause of supposed differences highlighted.

[Smoking Kills Dancing Doe]

It does leave me scratching my head though when I see the likes of Stoke (similar sized club) spending so much more on bringing in players than we ever did.

all on teh back of chairman willing to throw money away
or debts

Stoke's Chairman owns BET 365. It's a gravy train up there...

[Branfoot Out]

Sorry, just getting back to my first point regarding player sales during 2006-8. Are people suggesting that the £10.6 million stated by the club as being invested on players is a net figure taking into account the sales of Shorey, Kitson, Sonko etc? Or is this just the figure spent on player purchases?

If the latter is the truth, as seems likely by roughly calclulating our investments over that period, then where the hell are players sales listed in the statement? You can't publish a "financial statement" and pick and choose what you include!

[Harpers So Solid Crew]

Judging by the published accounts i make the wage bill for the two years that include the prem seasons more than £62.5million, something smells, but I doubt that the club are trying to hide money.

[Vision]

Judging by the published accounts i make the wage bill for the two years that include the prem seasons more than £62.5million, something smells, but I doubt that the club are trying to hide money.

Isn't it a little bit more than that. It's been published previously that the 1st Prem season was 31m and the relegation season 35m. That said I guess that would also include hotel staff as well.

[Sun Tzu]

Are these figures the football club or the holding company though ?

If they are the football club the hotel figures shouldn;t be in there (either running costs, staff costs, income, building etc etc) should they ?

[Wycombe Royal]

Sorry, just getting back to my first point regarding player sales during 2006-8. Are people suggesting that the £10.6 million stated by the club as being invested on players is a net figure taking into account the sales of Shorey, Kitson, Sonko etc? Or is this just the figure spent on player purchases?

It clearly states that the £10.6m is for the two Premiership seasons so it is unlikely they would be including the sales of players that happened after we were relegated in that figure.

[Vision]

Are these figures the football club or the holding company though ?

If they are the football club the hotel figures shouldn;t be in there (either running costs, staff costs, income, building etc etc) should they ?

My mistake. HSS is quite right with his figures which are inclusive of the Hotel so I would assume is for Reading Holdings Ltd

Strap's reproduction of those figures are here.

viewtopic.php?f=2&t=91522&start=0

[Royal Lady]

and like I said on that other thread, I'm surprised they can't even spell accrued! More surprised Spacey didn't pick that one up though!

[Wycombe Royal]

and like I said on that other thread, I'm surprised they can't even spell accrued! More surprised Spacey didn't pick that one up though!

Did the club spell them or is that Strap's own version? (at least we are discussing the important things now......)

[Branfoot Out]

Sorry, just getting back to my first point regarding player sales during 2006-8. Are people suggesting that the £10.6 million stated by the club as being invested on players is a net figure taking into account the sales of Shorey, Kitson, Sonko etc? Or is this just the figure spent on player purchases?

It clearly states that the £10.6m is for the two Premiership seasons so it is unlikely they would be including the sales of players that happened after we were relegated in that figure.

But they do include the Doyle, Bikey, and Hunt sales to pay off the alleged overdraft balance so surely all transfer sales for the period post-2006 need to be included?!? How else can the figures add up? You've essentially absorbed over £10 million (Kitson, Shorey, Sonko) worth of sales into the ether...

If you take into account these sales, then there should have been no problem in paying off the overdraft and no sales were necessary this close-season.

[Wycombe Royal]

Sorry, just getting back to my first point regarding player sales during 2006-8. Are people suggesting that the £10.6 million stated by the club as being invested on players is a net figure taking into account the sales of Shorey, Kitson, Sonko etc? Or is this just the figure spent on player purchases?

It clearly states that the £10.6m is for the two Premiership seasons so it is unlikely they would be including the sales of players that happened after we were relegated in that figure.

But they do include the Doyle, Bikey, and Hunt sales to pay off the alleged overdraft balance so surely all transfer sales for the period post-2006 need to be included?!? How else can the figures add up? You've essentially absorbed over £10 million (Kitson, Shorey, Sonko) worth of sales into the ether...

If you take into account these sales, then there should have been no problem in paying off the overdraft and no sales were necessary this close-season.

THey iclude the sales of those players in a different part of the statement. Look at the financials from Strap - that shows around a £12m net spend for the 2 Premiership seasons.

As with all accounting it is all about timing.

I would hazard a guess that the money from the sales of Kitson, Shorey, Sonko disaapeared into our income that helped pay the huge wage bill we had last season, and hence why we had to offload those high earners this summer.