Mills to Leicester 5 Million

[Ferris]

Bloody hell, you people

[Royal Rother]

Because, quite clearly it works.

Ok, I'm a patient man, so I'll explain...

If the average operating loss without selling players is £4m then if we budgeted for no operating loss it stands to reason we'd have £4m less to spend on players wages, management and infrastructure.

And I'm hopeful you'd agree that if we took that course of action the chances of challenging for promotion would be much reduced.

The reason we don't go down that route, and why we are able to budget for an operating loss, is because we are pretty secure in the knowledge that, due to the excellence of the adademy and scouting network / recruitment policy (and the vision and long-term investment in those areas), we will always have good players who can be sold at an excellent profit to make up for the shortfall.

That my friend, whether you get it or not, is GOOD BUSINESS!!

You may well be right, however football is about so much more than just "GOOD BUSINESS". It is about passion, excitement, the pain of failure and the joy of victory. We don't turn up every week just to check that the club are still solvent.

Exactly. Maybe we should drop out of the standard football league structure and form the 'Good Business' league because, regardless of all the horror stories/warnings of clubs going to the wall in their dozens, few in the football league appear to want to play by the same rules as us.

As for the 'look where we've come from, wonderful stadium etc. argument' - yes, we have come on a long way but so have numerous other clubs. The Mad Stad is no longer so unusual. Lots of clubs now have decent stadiums. If you stand still, others catch up and then overtake you.

We were one of the first of the smaller clubs to get a new stadium.

We were one of the first of the smaller clubs to invest in a proper Academy.

We are now reaping the rewards of those investments.

Other less well run clubs gamble huge sums of money on players that they don't really have just to compete with us.

Whatever the ineffectiveness of the penalties for financial mismanagement, the benefits our approach give rise to will continue to rack up over the next few years as new regulations on wages kick in and as the economic cutbacks have a deeper effect on people's disposable income.

[muddyfeet]

looks like to me, Mills wanted to leave, so therefore I'm glad we sold him. There's no place in the team for players who are eyeing up football elsewhere. Not sure if its just me, but it the comments which have come out of the club havent been similar for example like when we sold Gylfi etc. Very much, Mills sold, thanks for your service, lets move on. To me, they saw him as a asset which was always going to be sold, and he was prob never set on spending years at this club either.

[Royal Rother]

What shortcomings does the club have in those areas then?

The concensus on here is that the club is operating at an annual £2M loss.
If the club generates an extra £2M in ticket sales, perimeter advertising, executive boxes................

Righto. This might come in handy.

[Avon Royal]

We were one of the first of the smaller clubs to get a new stadium.

We were one of the first of the smaller clubs to invest in a proper Academy.

We are now reaping the rewards of those investments.

Other less well run clubs gamble huge sums of money on players that they don't really have just to compete with us.

Whatever the ineffectiveness of the penalties for financial mismanagement, the benefits our approach give rise to will continue to rack up over the next few years as new regulations on wages kick in and as the economic cutbacks have a deeper effect on people's disposable income.

Wigan were one of the first of the smaller clubs to get a new stadium.

Wigan invested in an academy.

Wigan invested in their team.

Wigan are now reaping the rewards of those investments.

[RobRoyal]

Reading fans getting fleeced. The irony.

Cheers Alanis.

[brendywendy]

What shortcomings does the club have in those areas then?

The concensus on here is that the club is operating at an annual £2M loss.
If the club generates an extra £2M in ticket sales................

So we spend £3m on a player for example, to generate £2m, not sure that stacks up. We have a solid fanbase of about 18-000 people they are not all full paying adults, from the figure I just mentioned in my last post we would need attendances of 24000 to obtain the extra £2m you talk about, and like it or not that is not going to happen at the moment.

if we had a wide and loyal fan base we could do it
but you only had to see the moaning, and talk of not renewing season tickets last year when we looked like wed finish midtable to see that we dont have that at all.
we may have had some extra money, but JM had to reduce season ticket prices by so much, just to maintain a 2/3 full ground.

[Sir Dodger Royal]

Hello Boys
How are things with RFC?

SDR is still mad enough to renew season ticket and pay early knowing full well that the Madman would again sell off players to bail out his c**p businesses. Yet no need to worry as we will always have a massive hole in the balance sheet according to RFC, which is down to creative accountancy and is complete bol***ks.

Interesting to note that Reading beat Leicester to clinch promotion to Premiership and teams like QPR and now Leicester have shown ambition whilst Reading scrape around in the bargain basement looking for scraps so that they can sell on and bail out even more of the Madman's business empire. Blackpool didn't invest and look how long they lasted in the Premiership. Hull, Portsmouth and West Ham went crazy with their investments and also floundered.

I gather we are even looking at players to replace Mills who are even third/fouth choice and can't get in Hull's team. Still the RTG's are happy because they believe all the PR nonsense which comes out of RFC. It must be true because the Club says so and of course we all believe! Well SDR is a lot wiser apart from being a mug to pay out for another season ticket.

When will the Madman **** off because the club will never achieve full potential like Wigan, Blackburn and Bolton who still manage to buy pretty good players and survive in the Premiership. None of them have gone into liquidation but at least have Chairman who have ambition. There is such a difference between investing rediculous amounts of money and a sensible approach as opposed to RFCs penny share investment. It is a question of balance and ambition, which is something the Madman is absolutely clueless about and he will never change.

It will be interesting to see how much money Donut has to replace Mills and I still reckon Long will be sold. Still Royals management are off to Derry City to look at another player. I wonder if he is fitter than Manset? SDR is not convinced that Manset was a good investment. Still there will be no excuses if after this pre season Manset is still gasping for oxygen after running 100 meteres. Reading should be moving forward but you can never do that if you are always selling your best players and not replacing with quality.

The Mills deal appears to be a good return but only if at least £2.5mill is given to Donut to bring in some gifted players. The RTG's should not hold their breath on that one!

Enjoy boys because it could well be long, boring season of no achievement. However of course we will again have a massive hole in the balance sheet next season. What a load of old tosh. Time for the Madman to clear off and time also for the Reading fans to really give the Club a lot of stick if results are poor. Some hope of that oneeeeeeeeeeeeee

SDR is still the main man with real facts in the real world. You know it makes sense.

[Uke]

Sure, operating costs in any business need to be kept under control, but it is not in any sense "good business" to take your eye off your income streams.

They didn't, transfer fees are the club's income stream

That might be your opinion, mate, but some of us view capitalising player assets merely papers over the shortcomings in the traditional income areas like ticket sales, corporates, merchandising etc.

Just look at the percentages

The percent that comes from selling players far outweighs that from ticket sales/concessions

Like any business it needs to concentrate efforts where the greatest rewards are from

And it doesn't matter how big your "customer base" is if you are making profits and ensuring the long term survival of the business

[RobRoyal]

Sorry Dodge - TL;DR.

[brendywendy]

the key is reinvenstment.

if a good proportion of the money raised, from mills, and most probably long- 12 million total? isnt spent on reinforcing the squad, then ill be as annoyed as the next man.

the fact is the model works. we buy small, sell big, and supplement through the academy.
people who say the team will suffer- ive not seen it yet,as we seem to have maintained our competetiveness. and the second JM sees there is a possibility of it going tits up, he will act- as he did twice with rodgers. once when he gave him millions to spend on the likes of mills. and again when he moved decisively to stop teh rot.

[Royal Rother]

We were one of the first of the smaller clubs to get a new stadium.

We were one of the first of the smaller clubs to invest in a proper Academy.

We are now reaping the rewards of those investments.

Other less well run clubs gamble huge sums of money on players that they don't really have just to compete with us.

Whatever the ineffectiveness of the penalties for financial mismanagement, the benefits our approach give rise to will continue to rack up over the next few years as new regulations on wages kick in and as the economic cutbacks have a deeper effect on people's disposable income.

Wigan were one of the first of the smaller clubs to get a new stadium.

Wigan invested in an academy.

Wigan invested in their team.

Wigan are now reaping the rewards of those investments.

Wigan chased a dream supported by 1 man's money. And that situation remains pretty much unchanged today.

What happens if Mr Whelan decides to get out in 3 years time?

There's no self-sufficiency there. No legacy.

What happens if SJM gets out in 3 years time?

Business as usual, that's what.

[Snowball]

I woke up this morning realising how little I cared about Mills going.

Call it instinct or intuition, but it doesn't feel bad at all.

He just (from my perspective) "wasn't a Reading player"

I feel sure we will find 1-2 decent FBs and probably a LB soon
and I sincerely believe we won't miss Mills.

I'm not expressing myself very well, but of all the RFC players he's the least
I "relate to". He scores a goal, I'm please for the club, not him, whereas Kebe,
Long, Hunt, HRK, Elwood (already) feel "part of Reading FC". It's a family thing.

[Uke]

What shortcomings does the club have in those areas then?

The concensus on here is that the club is operating at an annual £2M loss.
If the club generates an extra £2M in ticket sales................

5,000 more season tickets? plus the costs of marketing campaigns etc...?

or sell a player for profit?

Difficult isn't it?

[brendywendy]

Yet no need to worry as we will always have a massive hole in the balance sheet according to RFC, which is down to creative accountancy and is complete bol***ks.

oh for gods sake- the accounts add up, make sense, and are available to view.
when they come out for the years including sigs sale and now mills/long we'll be able to see what the money was used for, but JM isnt robbing it.
the end.

Enjoy boys because it could well be long, boring season of no achievement. However of course we will again have a massive hole in the balance sheet next season. What a load of old tosh. Time for the Madman to clear off and time also for the Reading fans to really give the Club a lot of stick if results are poor.

LOL- thats what you said last year. in fact thats what you said the year we trounced the league with 106 points. oh, and when we finished just outside europe in the premiere league.

[Uke]

the key is reinvenstment.

if a good proportion of the money raised, from mills, and most probably long- 12 million total? isnt spent on reinforcing the squad, then ill be as annoyed as the next man.

the fact is the model works. we buy small, sell big, and supplement through the academy.
people who say the team will suffer- ive not seen it yet,as we seem to have maintained our competetiveness. and the second JM sees there is a possibility of it going tits up, he will act- as he did twice with rodgers. once when he gave him millions to spend on the likes of mills. and again when he moved decisively to stop teh rot.

But our "re-investment" is buy small, sell big as you say

So we don't invest the transfer fees in buying players - but instead in developing them and running an academy

It's just not as visible to the supporter

[Gordons Cumming]

SDR

You are a boring, negative, attention seeking prat.

HTH

[Dick Habbin's hairdo]

I woke up this morning realising how little I cared about Mills going.

Call it instinct or intuition, but it doesn't feel bad at all.

He just (from my perspective) "wasn't a Reading player"

I feel sure we will find 1-2 decent FBs and probably a LB soon
and I sincerely believe we won't miss Mills.

I'm not expressing myself very well, but of all the RFC players he's the least
I "relate to". He scores a goal, I'm please for the club, not him, whereas Kebe,
Long, Hunt, HRK, Elwood (already) feel "part of Reading FC". It's a family thing.

It's soft and girlie - but my sentiment, too.

5 million for a centre half who has one great game in ten and is a bit of an arse, too. Thank you very much, we'll be having that.

[Snowball]

I woke up this morning realising how little I cared about Mills going.

Call it instinct or intuition, but it doesn't feel bad at all.

He just (from my perspective) "wasn't a Reading player"

I feel sure we will find 1-2 decent FBs and probably a LB soon
and I sincerely believe we won't miss Mills.

I'm not expressing myself very well, but of all the RFC players he's the least
I "relate to". He scores a goal, I'm please for the club, not him, whereas Kebe,
Long, Hunt, HRK, Elwood (already) feel "part of Reading FC". It's a family thing.

It's soft and girlie - but my sentiment, too.

5 million for a centre half who has one great game in ten and is a bit of an arse, too. Thank you very much, we'll be having that.

I've been know to watch "Glee" too.

[under the tin]

if we had a wide and loyal fan base we could do it
but you only had to see the moaning, and talk of not renewing season tickets last year when we looked like wed finish midtable to see that we dont have that at all.
we may have had some extra money, but JM had to reduce season ticket prices by so much, just to maintain a 2/3 full ground.

Agreed. We don't have the big fanbase, which makes the work of the commercial department even more vital.
But you have to give those in that department some ammunition to work with.
I think that some of you on here cant see that whilst we supporters (on this site particularly) can bathe in the sunshine of having a well run club, however, most of the corporates probably have the similar take on things to some of the ignoramuses who actually think that all the money is going down the back of JM's sofa.
The truth is that these companies/sponsors/advertisers aren't doing what they do for the benefit of the club, they are doing it for their own benefit. They want their brand exposure. They want to entertain their clients, and meet Wayne Rooney in the lounge after the match.
I suspect that there are Chang executives still scratching their head as to why they still can't find the city of Everton on the UK map