6.7 million profit

[Sir Rodger Doyle]

Howe told readingfc.co.uk, "I was so pleased we put those 60 rooms on a year or so ago. I know they are always empty but they look really good. A lot of people thought it was a mistake to spend millions pointlessly in the season we were relegated from the premier league for the want of a right winger, but what it has done is give us options.

"We need options now when we have been relegated, and with local competition increasing it was important to do some property development for the sake of it. It did give me something to do after all and as i've said before it does look really good."

"We have upgraded the hotel and have spent money on it. Now we need £11,000,000 just to balance the books. So, I would ask all true loyal Reading fans to please spend as much money as you can on season tickets and hotel meals and drinks and we will invest that money away from the team for our future" Well it's an option, isn't it?

Hopefully we will now see an upgrade to the team with cash spent on it. If not we maybe need to start asking why we are the 2nd most expensive club in the CCC for a family to watch.

Please see above my friend, it is clear where my £1000 a season goes. Dammed Young Royals scheme

[Sir Rodger Doyle]

I'll make a different stab at it...

23 League games last season, average crowd 19,000, average ticket price £20 generates less than £9m income. Add in say £3m from Sky money, £1m of sundry revenues gives £13m.

Doyle and Hunt were supposed to be on circa £20k pw = £2.5m (incl Employers NIC costs)

If we had another 18 players who could be considered 1st team squad on an average of £7k pw that would give another £6.7m.

Fringe / young players may have taken a conservative net (after loan contributions) £1m.

Coppell and the coaching staff would have taken approx £2m I guess.

Other administrative wages costs can reasonably be estimated as £2m.

It is safe to assume that the other costs of running the club would have been an absolute minimum of £10m (as shown above they were in 2008 17.4, 2007 13.9, 2006 8.2, 2005 6.9, 2004 6.0)

So, adding up the above we have:

Income of £13m.
Total Wages of £14.2m.
Other costs of £10m.

Oh, look, a loss of £11m - good job we had that parachute payment isn't it?

Player trading made us a profit but it would be sensible if that were left in the coffers for steady investment should it be required in the next 2 or 3 years. Some might prefer us to have blown it all last season, or indeed this close season, but that would be a gamble and it is definitely better to keep it in reserve for emergencies. JM has taken NOTHING out for many years if I recall, so no reason to think he will have started now.

I have no special knowledge of RFC but I think these numbers are reasonable and might just help open a few eyes - (hang on a sec, who am I kidding?). Anyway, do correct me if I've got something obviously wrong.

Anyway I'm sure the new manager will respect the fact that he can have a decent budget for new players but that will have to come from player sales - sensible management of a stable business.

Oh, and Royal Blue, RFC's accounts are open to scrutiny by many bodies and it is extremely unlikely money is being syphoned off anywhere, manipulated or hidden in any way - this is not some piddly little business where the accountants earn their money by creating a few expenses or schemes and turning blind eyes to stuff they know has happened but couldn't possibly have been expected to have noticed...

Think that is a fair assesment of out goings - if its accurate dont know. However there are a few glaring ommisions on the income side.

1) Hotel
2) Conference centre
3) London Irish
4) Match day car parking
5) Rental from Radio Station
6) Rental from Jazz Cafe
7) Fee charged to Reading Council for Park and Ride
Sponsorship (Waitrose) and Match day
9) Match day hospitality
10) Match day beverage and food sales
11) Fee for burger van 'pitches'
12) Merchandise and programme sales
13) Charges for one off events (Reading half marathon finish)

Now I know most of the above will have some sort of operating cost attached to them, but they will also generate a fair amont of cash for Reading FC Holdings PLC

Who are not Reading Football club.
I know the cold analytical logical number crunchers won't agree, but there is only one person who benefits from an increase in asset value at RFC Holdings.

[Northern Git]

I'll make a different stab at it...

23 League games last season, average crowd 19,000, average ticket price £20 generates less than £9m income. Add in say £3m from Sky money, £1m of sundry revenues gives £13m.

Doyle and Hunt were supposed to be on circa £20k pw = £2.5m (incl Employers NIC costs)

If we had another 18 players who could be considered 1st team squad on an average of £7k pw that would give another £6.7m.

Fringe / young players may have taken a conservative net (after loan contributions) £1m.

Coppell and the coaching staff would have taken approx £2m I guess.

Other administrative wages costs can reasonably be estimated as £2m.

It is safe to assume that the other costs of running the club would have been an absolute minimum of £10m (as shown above they were in 2008 17.4, 2007 13.9, 2006 8.2, 2005 6.9, 2004 6.0)

So, adding up the above we have:

Income of £13m.
Total Wages of £14.2m.
Other costs of £10m.

Oh, look, a loss of £11m - good job we had that parachute payment isn't it?

Player trading made us a profit but it would be sensible if that were left in the coffers for steady investment should it be required in the next 2 or 3 years. Some might prefer us to have blown it all last season, or indeed this close season, but that would be a gamble and it is definitely better to keep it in reserve for emergencies. JM has taken NOTHING out for many years if I recall, so no reason to think he will have started now.

I have no special knowledge of RFC but I think these numbers are reasonable and might just help open a few eyes - (hang on a sec, who am I kidding?). Anyway, do correct me if I've got something obviously wrong.

Anyway I'm sure the new manager will respect the fact that he can have a decent budget for new players but that will have to come from player sales - sensible management of a stable business.

Oh, and Royal Blue, RFC's accounts are open to scrutiny by many bodies and it is extremely unlikely money is being syphoned off anywhere, manipulated or hidden in any way - this is not some piddly little business where the accountants earn their money by creating a few expenses or schemes and turning blind eyes to stuff they know has happened but couldn't possibly have been expected to have noticed...

Think that is a fair assesment of out goings - if its accurate dont know. However there are a few glaring ommisions on the income side.

1) Hotel
2) Conference centre
3) London Irish
4) Match day car parking
5) Rental from Radio Station
6) Rental from Jazz Cafe
7) Fee charged to Reading Council for Park and Ride
Sponsorship (Waitrose) and Match day
9) Match day hospitality
10) Match day beverage and food sales
11) Fee for burger van 'pitches'
12) Merchandise and programme sales
13) Charges for one off events (Reading half marathon finish)

Now I know most of the above will have some sort of operating cost attached to them, but they will also generate a fair amont of cash for Reading FC Holdings PLC

Who are not Reading Football club.
I know the cold analytical logical number crunchers won't agree, but there is only one person who benefits from an increase in asset value at RFC Holdings.

Yep I know that. RFC holdings are the sole owners of Reading Football club limited and Millenium Madejski Hotels. If I included the hotel in the income list then that revenue, if taken as part and parcel of the overall income, will show up in the holding company P&L

[Bath Hoops]

With the new Hilton nearing completion it will be interesting to see the effect it has on sales at the Madejski and whether they have to become more realistic on their corporate rates. I stay there for work and it is a nice hotel although as others said the quality and prices of the meals leave abit to be desired but I've not experienced any bad moments since its opened.

[Alan Partridge]

I'll make a different stab at it...

23 League games last season, average crowd 19,000, average ticket price £20 generates less than £9m income. Add in say £3m from Sky money, £1m of sundry revenues gives £13m.

Doyle and Hunt were supposed to be on circa £20k pw = £2.5m (incl Employers NIC costs)

If we had another 18 players who could be considered 1st team squad on an average of £7k pw that would give another £6.7m.

Fringe / young players may have taken a conservative net (after loan contributions) £1m.

Coppell and the coaching staff would have taken approx £2m I guess.

Other administrative wages costs can reasonably be estimated as £2m.

It is safe to assume that the other costs of running the club would have been an absolute minimum of £10m (as shown above they were in 2008 17.4, 2007 13.9, 2006 8.2, 2005 6.9, 2004 6.0)

So, adding up the above we have:

Income of £13m.
Total Wages of £14.2m.
Other costs of £10m.

Oh, look, a loss of £11m - good job we had that parachute payment isn't it?

Player trading made us a profit but it would be sensible if that were left in the coffers for steady investment should it be required in the next 2 or 3 years. Some might prefer us to have blown it all last season, or indeed this close season, but that would be a gamble and it is definitely better to keep it in reserve for emergencies. JM has taken NOTHING out for many years if I recall, so no reason to think he will have started now.

I have no special knowledge of RFC but I think these numbers are reasonable and might just help open a few eyes - (hang on a sec, who am I kidding?). Anyway, do correct me if I've got something obviously wrong.

Anyway I'm sure the new manager will respect the fact that he can have a decent budget for new players but that will have to come from player sales - sensible management of a stable business.

Oh, and Royal Blue, RFC's accounts are open to scrutiny by many bodies and it is extremely unlikely money is being syphoned off anywhere, manipulated or hidden in any way - this is not some piddly little business where the accountants earn their money by creating a few expenses or schemes and turning blind eyes to stuff they know has happened but couldn't possibly have been expected to have noticed...

I wasn't mentioning completely last season, but even if the PRemeirship money is half of what the Press report, (they mention all sorts of nonsense, every year it 'means £50million a season to go up, £75million the next season) even if it's half or even less of that say £25million a season, that's £50million + 2 lots of parachute money. Reading spent in net transfers preciseley sod all in the Premier League. Already appreciate that wages,staff costs and the like would have gone up fairly dramatically in some but not all cases, I still don't think the above run through can account for those sums of money.

JM paying himself back or paying off longer term loans would certainly make more sense than to say the football club maybe lost a few million last year, which in all honesty I heavily doubt they've gone from a £7million profit to an £11million loss even with relegation.

[Wycombe Royal]

Think you've considerably underestimated Doyle and Hunt's pay. Doyle is rumoured to be earning closer to £40k pw.

No way are we paying one player over £2m per year in the Championship.

£25k per week at the most.

[Silver Fox]

Were it not for the corporate trade it would be an unsuccessful part of RFC.

Were it not for the fact she doesn't have bollocks my auntie would be my uncle

[Royal Rother]

I know the cold analytical logical number crunchers won't agree, but there is only one person who benefits from an increase in asset value at RFC Holdings.

That would be the same person who suffers from a decrease in asset value at RFC Holdings.

JM's personal portfolio will undoubtedly have suffered in the last year or so, but there do not seem to have been any tighter financial reins at RFC. It is now run as a stand-alone, almost entirely self-sufficient business which has always been JM's intention.

[Silver Fox]

Hopefully we will now see an upgrade to the team with cash spent on it. If not we maybe need to start asking why we are the 2nd most expensive club in the CCC for a family to watch.

off the point, whose the 1st most expensive to watch in the CCC?

I'd quite like to know a full breakdown as normally when wch comes out with these claims they're not substantiated and are often based on offers for kids at other clubs that are no longer available

[Royal Rother]

– He'll also be employing the services of a very expensive accountant. I've no doubt he'll be worth every penny.

I wouldn't know who his personal accountants are but I believe the auditors of RFC are Myers Clark, a fairly small practice in Watford. IIRC the fee last year was circa £20k - I suspect you'll agree, that is not expensive.

[who are ya?]

Howe told readingfc.co.uk, "I was so pleased we put those 60 rooms on a year or so ago. A lot of people thought it was a mistake but what it has done is give us options.

"We need options now when we have to be price sensitive, and with local competition increasing it was important.

"We have upgraded the hotel and have spent money on it.

Hopefully we will now see an upgrade to the team with cash spent on it. If not we maybe need to start asking why we are the 2nd most expensive club in the CCC for a family to watch.

off the point, whose the 1st most expensive to watch in the CCC?

QPR have gotta be a front runner.

[westendgirl]

Hopefully we will now see an upgrade to the team with cash spent on it. If not we maybe need to start asking why we are the 2nd most expensive club in the CCC for a family to watch.

off the point, whose the 1st most expensive to watch in the CCC?

I'd quite like to know a full breakdown as normally when wch comes out with these claims they're not substantiated and are often based on offers for kids at other clubs that are no longer available

I don't know about kids offers but kids prices often have different age breaks anyway so depends on the age of the family. Certainly the figures I've seen in the past have shown up that RFC is unusual in having just 2 prices for the whole stadium so it depends on which prices you use to compare. Tickets overlooking the centre line might have a different order of price to those in the corners of the stadium, so if you are going to make a definitive statement like that you really should state the criteria or does that take the fun out

[PieEater]

IIRC we had a "short term" bank loan of around £4M to pay off before his Madj got any money.

[swansea jack]

Some LOLarge LOLz on 90% of these comments, especially the fundamental lack of accounting knowledge, and I really hope that you don't run your own finances the way your appear to want SJM to run RFC unless you're hoping to end up on this list:

http://www.clubsincrisis.com/clublist.asp

SJM appears to be prudently running the club, is still owed a considerable sum and can spend his own money on statues, new schools or even BJs from crack whores behind the Jet garage. I think you need to be a little more thankful.

[RoyalBlue]

Oh, and Royal Blue, RFC's accounts are open to scrutiny by many bodies and it is extremely unlikely money is being syphoned off anywhere, manipulated or hidden in any way - this is not some piddly little business where the accountants earn their money by creating a few expenses or schemes and turning blind eyes to stuff they know has happened but couldn't possibly have been expected to have noticed...

All companies' (Ltd and plc) accounts are open to public and official scrutiny! That does not mean that there are not an awful lot of very good accountants, including some in not so piddly little businesses, working hard to make sure that their accounts present the picture that works best for the circumstances of their organisation at any particular moment in time. Of course, all of this is usually done within the boundaries of the law, in the same manner that organisations and individuals seek to avoid, rather than evade tax.

Anyone who takes a set of accounts at face value and/or as painting the full picture is, IMO, rather naive.

[Royal Rother]

The point is RB that NOT all Ltd Co and plc accounts ARE scrutinised in the depth that a football club's are.

Anyone taking the view that every set of accounts filed is dodgy (as you seem to be doing) is not naive, just plain ignorant.

[Schards#2]

The point is RB that NOT all Ltd Co and plc accounts ARE scrutinised in the depth that a football club's are.

Anyone taking the view that every set of accounts filed is dodgy (as you seem to be doing) is not naive, just plain ignorant.

I didn't read that in his post anywhere.

All he said was anyone who takes a set of accounts at face value is naive. Which is something with which I would concur.

[Royal Rother]

It would indeed be naive to assume that every set of accounts filed with the tax man and/or Companies House is entirely accurate and consistent with accepted accounting and previously applied policies. I am not claiming otherise.

However most accounts filed ARE entirely reliable and it is ignorant to suggest they are not. The inference behind RB's posts (and there have been many in the last year or more) is that accountants all run around trying to find ways of twisting the facts to show the best possible result in any given circumstances for their clients. That is hogwash and should not go unchallenged.

[westendgirl]

It would indeed be naive to assume that every set of accounts filed with the tax man and/or Companies House is entirely accurate and consistent with accepted accounting and previously applied policies. I am not claiming otherise.

However most accounts filed ARE entirely reliable and it is ignorant to suggest they are not. The inference behind RB's posts (and there have been many in the last year or more) is that accountants all run around trying to find ways of twisting the facts to show the best possible result in any given circumstances for their clients. That is hogwash and should not go unchallenged.

Quite agree, there is an assumption among those who want to believe that figures will tell you want you want to hear, that all accountants are either ignorant of accounting standards or think that those standards can be ignored when you want to or they have no idea of how restrictive the standards are.

But then why not pull up a stereotype - after all everyone knows all footballers are thick.

[Schards#2]

LOL @ the collective hissy fit from the accountancy world.

No one's suggesting another Worldcom