Madejski's comments to BBC Radio Berkshire

[IMAMATEOFJOVSKY]

I just wish that Egomaniac did not broad brush his statements about players wages - if he is referring to Lampards abhooresnt £150k a week fair enough - if he's talking about Championship level players earning £20k a week plus - dont think so!

[Schards#2]

we will make a loss this season
any incoming transfer money will be weighted towards offsetting the loss we make on the day to day business side of things.
just look at the accounts for our 1st year to see where the money went while in teh top flight , and how much mr mad is "lieing" to us and "stealing " all our money

just taking a look down the leagues at previous prem teams, and the perilous financial state some of the more recently demoted teams are in to see what hes on about

the money is all in plain view, and what we did with it

if we are getting 22 M less in tv money after parachute payments, have fewer fans coming through the gates, and each fan paying considerably less for their tickets,while only making 6m profit when we were up anyway, it doesnt take a rocket scientist to see why we need to"cut our coat according to the cloth" in order to stop us losing money this season

But that rocket scientist must also realise that costs have tumbled too? Wages are supposely slashed by around 40%, or so we were led to believe anyway.

do you think the 40% reduction in wages covers the 22 million we are losing?
and that loss, as explained, is on top of a huge decrease in income from ticket sales

So if we're losing £22 million in revenue, that would suggest we gained £22 million in revenue the previous two years. Where is it?

[brendywendy]

So if we're losing £22 million in revenue, that would suggest we gained £22 million in revenue the previous two years. Where is it?

wages doubled
training ground
media centre
players purchased in every window?

why where do you think its got to?

and actually didnt the increased prem TV deal only come in last season
so our 1st year up we didnt get nearly that much

[brendywendy]

revenue/turnover is irrelevant IMO
it only counts if its profit-otherwise its already gone innit

[Schards#2]

wages doubled
training ground
media centre
players purchased in every window?

why where do you think its got to?

I don't know, that's why i'm asking.

The things you've listed wouldn't account for that much of it.

My best guess is that Madejski's repaid some of his loan and, if he has, that's fine. I'd just like to know where the money has gone.

[brendywendy]

wages doubled
training ground
media centre
players purchased in every window?

why where do you think its got to?

I don't know, that's why i'm asking.

The things you've listed wouldn't account for that much of it.

My best guess is that Madejski's repaid some of his loan and, if he has, that's fine. I'd just like to know where the money has gone.

sorry! i get a bit defensive with all the madejskis robbing us blind posts

some one just said on this thread that the 40% wage reduction ammounted to 12 million-so if it doubled before that would ammount to 10% more than that.
i imagine the training ground and media centre would have cost millions too

and recent sales outstanding i believe weve spent a fair few millions on players since promotion too
even if you could argue that some of them were poor.

i would imagine any loan repayments would be clearly indicated in the accounts-though i cant be sure without looking at them again.


i just get upset with people throwing 60 million figures around, and expecting the club to justify why they havent spent all that on players

though im open to persuasion-if anyone can show me the maths, and where im getting it wrong ill gladly adjust my position to one of indignation at our chairman.

[Turns8]

It will be to pay off some of the loan...to make the club more attractive to potential suitors.

Afterall, how many people go out and buy a secondhand car if they know there is outstanding finance on it...same principle with the stadium...

[Riseley]

It is nothing to do with you or me Schards, it is Mr Mad's baby and if he wants to economise on rusks it is his prerogative.

[Royal Rother]

"A newly published study by the PKF Football Industry Group, titled Under Pressure, surveyed a sample of club finance directors and underlines some of the adjustments that are being made. It shows that, as more Premier League clubs anticipate making a loss this season, there has been a dramatic rise – from 46 per cent in 2007 to 89 per cent this year – in the number of clubs intending to use more than 90 per cent of their overdraft.

The study also reveals that two thirds of Premier League clubs intend to reduce their first-team squads this year compared with only 15 per cent in 2007. Clubs have also admitted to increasing problems with sourcing finance amid growing pressure from the banks."

[working class hero]

i imagine the training ground and media centre would have cost millions too

Brendywendy you keep making statements of fact and yet we now know that you are really only going on what you 'imagine'....
Join the rest of us in not really knowing what is going on....

The media centre will have cost a fair bit. Hogwood is - I believe - owned by JM. The buildings there are portakabins, so if the price of £2 miilion which I have seen quoted is true then heads should roll!

[brendywendy]

i imagine the training ground and media centre would have cost millions too

Brendywendy you keep making statements of fact and yet we now know that you are really only going on what you 'imagine'....
Join the rest of us in not really knowing what is going on....

The media centre will have cost a fair bit. Hogwood is - I believe - owned by JM. The buildings there are portakabins, so if the price of £2 miilion which I have seen quoted is true then heads should roll!

how is it a statement of fact if i started it with "i imagine..."

my statements of fact so far are that 6 million profit made in our 1st year up
6 million loss in our championship year
wage bill doubled in our 1st year up
22 million less coming in in TV/prem/parachute money than last year
the 40% reduction in wage bill ammounts to 12 million quid.

i reckon-even based on the portakabin model that the training ground could very easily have cost 2 million in total to make half habitable-it would probably cost that much just to get the pitches and drainage right
and the media centre even more so- though i dont know for sure, and never said i did.


and actually hogwood(according to DG-who knows these things) is owned by RFC

[Northern Git]

I can answer one of those.

Does RFC own the Hogwood Park training complex? If not who does, and how much do RFC pay to use it?

Yes, they do - they've also spent a damn lot of money there over the past couple of years in upgrading the facilities. For instance (and it sounds fatuous and banal but it's true!) PL players' won't accept a canteen, they have to have a "restaurant, with chef.

There's also been quite a bit of money spent on the new media centre which was insisted upon to bring it up to PL standards.

So, in many ways, we are a lot stronger in the background and the way we're run than we were 3 years ago when we started the last CCC season.

Are you sure about that? Because there are things in the last R&A that would suggest not.

[Royal Rother]

"there has been a dramatic rise – from 46 per cent in 2007 to 89 per cent this year – in the number of clubs intending to use more than 90 per cent of their overdraft."

Begs the question "what happens next year"? There will be less borrowings available than this year, with banks squeezing further to reduce their exposure on relatively high-risk facilities to football clubs.

All those clubs making a loss this year, and there will be loads, will find they have less cash available as a result of those losses, and then even less cash available as the banks reduce their facilities -

WTF are they going to do?

Sell their players? Yes, but who is going to buy them when most other clubs will be in the same predicament?

The Administrators are going to have a field day.

RFC, as one of the only prudently run clubs around may get promoted by virtual default as half the teams in the league start of with points deductions....

I am no economist so don't pretend to have an expert's view of all this at all - but it is worthy of debate in the context of the thread.

[howser]

I think the main objection people have on this and similar threads is the consistent contradictions that are thrown around, the prime example we have been given is that SSC has money then we are told he doesnt, we all accept that money has gone out on essential ground work and stadium modernisation,and "obscene" (JM's words not mine) salaries, but that is the nature of the beast !!. In the previous two years we have earnt an awful lot of money, full house crowds, with heavilly increased entrance and season ticket prices, TV money and Premiership money, and rather alot I recall from finishing eighth in our first season. The comments that we are not going to pay high wages will almost certainly stop quality, proven Championship players even considering coming here, sadly football is a very expensive venture to be involved in and all in all it would have been better if JM had unloaded the club from his tenure after the first Premier season, however I suspect his valuation of the club outstripped any potential buyers aspirations to own a top league club. I as we all do, desperately want to return to the Premiership, we have the infrastructure, in stadium and facilities to do so, however my major concern would be that if we did excel again this year and reach the golden challice of the premiership then we would again be stuck in the football never neber land and try to survive with championship players and finances. I have the utmost respect for what JM has achieved here, and he did what he said, getting us into the remier league, although he never stated that he would keep us there, but he is a business man who expects not to be out of pocket from what he invests in, football however doesnt allow for a business approach to guarantee success.

[Schards#2]

It is nothing to do with you or me Schards, it is Mr Mad's baby and if he wants to economise on rusks it is his prerogative.

That's perfectly true. What i'm objecting to is being bullshitted to.

[brendywendy]

wage bill doubled
gate receipts increased by?...........
.................no way near 100%.




im not sure where you are being bullshitted schards.....apart from people on here who arent the club accountants......
oh hang on-that includes me.....

[Royal Rother]

football however doesnt allow for a business approach to guarantee success.

And neither does the alternative.

The "business approach" does however reduce the chances of the ultimate failure of administration.

[Platypuss]

i imagine the training ground and media centre would have cost millions too

Brendywendy you keep making statements of fact and yet we now know that you are really only going on what you 'imagine'....
Join the rest of us in not really knowing what is going on....

The media centre will have cost a fair bit. Hogwood is - I believe - owned by JM. The buildings there are portakabins, so if the price of £2 miilion which I have seen quoted is true then heads should roll!

how is it a statement of fact if i started it with "i imagine..."

my statements of fact so far are that 6 million profit made in our 1st year up
6 million loss in our championship year
wage bill doubled in our 1st year up
22 million less coming in in TV/prem/parachute money than last year
the 40% reduction in wage bill ammounts to 12 million quid.

i reckon-even based on the portakabin model that the training ground could very easily have cost 2 million in total to make half habitable-it would probably cost that much just to get the pitches and drainage right
and the media centre even more so- though i dont know for sure, and never said i did.


and actually hogwood(according to DG-who knows these things) is owned by RFC

Is the RFC accounting year Start April - End March? If so, does the mismatch between football seasons and accounting years have any effect on where profits appear?

In other words, does the 06/07 FY 6M declared profit properly reflect the first year Premiership financial position?

Also, how much of the first year wage bill increase was down to exceptional one-off payments - ie promotion bonuses?

[brendywendy]

dunno!

good points about financial years though

[howser]

I realise that Rother, but there has to be reasons why we are not prepared to invest in players that will improve our status, quality players will or should naturally make a better side thus increasing the amount of fans that will want to watch games thus increasing the income through the turnstiles. We have been reluctant to spend for a few years now and we did "get lucky" with the signings of Doyle, Sonko and Hunt, but since then our "free" or low fee players has been pretty dismal, why ? that can only be explained by the scouting network, the old adage of "speculate to accumulate" might not be the ideal to qoute when conversing about the rights and wrongs of paying high transfer fees but surly some speculation should be possible ?? after all unless JM is taking back all his loans, as has been suggested in some of these threads, there has to be some sort of floating kitty for the manager to dip into the market, £8.5m transfer money in so far this close season, and if what we read is true, a possible £7 or £8m for Doyle then there has to be a reinvestment in the side, if not it is going to be a very rocky road for JM from the attending fans.