Forum | Reading FC - Â£30m loss to finish 20th in Championship by Steve_M

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Reading FC - Â£30m loss to finish 20th in Championship 08:08 - May 18 with 2737 views

Utterly pointless club, guess the crowds are up on the old Elm Park days but dropping fast.

#ReadingFC 2018/19 financial results covered a season when the #Royals finished 20th in the Championship for the second consecutive year. Manager Paul Clement was replaced in December 2018 by JosÃ© Gomes, who was in turn succeeded by Mark Bowen October 2019. Some thoughts follow.
— Swiss Ramble (@SwissRamble) May 18, 2020

In fact, #ReadingFC loss would have been even larger without Â£8m profit from sale of Hogwood Park training ground (sales proceeds Â£13m less Â£5m book value). This follows Â£7m profit from stadium sale last year at Â£27m price (much lower than #DCFC Â£81m, #SWFC Â£60m and #AVFC Â£57m). pic.twitter.com/0IUx8OUvOa
— Swiss Ramble (@SwissRamble) May 18, 2020

And they sold the training ground in totally transparent transaction.

Wage bill Â£41m.

#ReadingFC Â£41m wage bill is the 8th highest in the division, meaning the club has badly under-performed. For a comparative, #SUFC had the same wages, though that included substantial promotion bonuses. The club knows that it has to address the issues caused by a large squad. pic.twitter.com/OhyazDKu8J
— Swiss Ramble (@SwissRamble) May 18, 2020

No doubt they'll blame next year on Covid-19.

Poll:	When are the squad numbers out?
Blog:	Cycle of Hurt

Reading FC - Â£30m loss to finish 20th in Championship on 09:04 - May 18 with 2612 views

Radlett_blue

A really good example of how the Football League - and especially the Championship - clubs cannot continue to exist with the current wage structure and no crowds. Something has to give, unless you think crowds at stadiums are coming back soon.

Poll:

Should horse racing be banned in the UK?

Reading FC - Â£30m loss to finish 20th in Championship on 09:13 - May 18 with 2578 views

GeoffSentence

but they got the record, 106
106,106,
they got the record,106

	Don't boil a kettle on a boat.
Poll:	The best Williams to play for Town

Reading FC - Â£30m loss to finish 20th in Championship on 09:21 - May 18 with 2554 views

Kieran_Knows

Such a soulless and utterly pointless football club.

Poll:

We’ve got super KM, he knows exactly what we need. Woolfie at the back…

Reading FC - Â£30m loss to finish 20th in Championship on 09:37 - May 18 with 2518 views

ElderGrizzly

How does a club like them and Sheff Wed manage to spend over £40m on wages?!

Reading FC - Â£30m loss to finish 20th in Championship on 09:38 - May 18 with 2512 views

footers

Reading FC - Â£30m loss to finish 20th in Championship on 09:21 - May 18 by Kieran_Knows
Such a soulless and utterly pointless football club.

The club fits the town like a glove.

	footers QC - Prosecution Barrister, Hasketon Law Chambers
Poll:	Battle of the breakfast potato... who wins?

Reading FC - Â£30m loss to finish 20th in Championship on 09:39 - May 18 with 2507 views

Radlett_blue

Reading FC - Â£30m loss to finish 20th in Championship on 09:37 - May 18 by ElderGrizzly
How does a club like them and Sheff Wed manage to spend over £40m on wages?!

If you assume a squad of 20 players, that means £2m each a year or getting on for £40k a week each. Beyond belief really, even if it includes non playing wages, loan fees etc.

Poll:

Should horse racing be banned in the UK?

Reading FC - Â£30m loss to finish 20th in Championship on 09:43 - May 18 with 2490 views

Steve_M

Reading FC - Â£30m loss to finish 20th in Championship on 09:04 - May 18 by Radlett_blue
A really good example of how the Football League - and especially the Championship - clubs cannot continue to exist with the current wage structure and no crowds. Something has to give, unless you think crowds at stadiums are coming back soon.

Certainly, the current hiatus is the best chance for football to take stock of its financial mess since the formation of the Premier League. I suppose a lot depends on when football is back to 'normal' with full grounds, if empty grounds continued for years then tv money might be much reduced.

I suspect the game will try and muddle through a while longer though. It really needs a few clubs to go bust to force any change, bigger ones than Bury this time.

Poll:	When are the squad numbers out?
Blog:	Cycle of Hurt

Reading FC - Â£30m loss to finish 20th in Championship on 09:50 - May 18 with 2448 views

tractorboy1978

Reading FC - Â£30m loss to finish 20th in Championship on 09:39 - May 18 by Radlett_blue
If you assume a squad of 20 players, that means £2m each a year or getting on for £40k a week each. Beyond belief really, even if it includes non playing wages, loan fees etc.

That covers 549 members of staff so player wages nothing like that, although still bonkers in comparison to their turnover.

Reading FC - Â£30m loss to finish 20th in Championship on 09:51 - May 18 with 2446 views

Swansea_Blue

Reading FC - Â£30m loss to finish 20th in Championship on 09:37 - May 18 by ElderGrizzly
How does a club like them and Sheff Wed manage to spend over £40m on wages?!

Mind boggling innit

Poll:

Do you think Pert is key to all of this?

Reading FC - Â£30m loss to finish 20th in Championship on 11:19 - May 18 with 2328 views

BlueBadger

God I hate Reading. They'r euphorias there with Chelsea and West Ham in my 'hate' list.

A nothing club, who've never achieved anything, ever, playing in a soulless, difficult-to-reach ground that we invariably lose at.

	I'm one of the people who was blamed for getting Paul Cook sacked. PM for the full post.
Poll:	What will Phil's first headline be tomorrow?
Blog:	From Despair to Where?

Reading FC - Â£30m loss to finish 20th in Championship on 11:20 - May 18 with 2324 views

footers

Who was it on here, by the way, who stayed in some hotel in Reading where the alarm clock was about getting the 106 or something? It sounded horrific.

	footers QC - Prosecution Barrister, Hasketon Law Chambers
Poll:	Battle of the breakfast potato... who wins?

-1

Reading FC - Â£30m loss to finish 20th in Championship on 11:34 - May 18 with 2295 views

longtimefan

Reading FC - Â£30m loss to finish 20th in Championship on 09:37 - May 18 by ElderGrizzly
How does a club like them and Sheff Wed manage to spend over £40m on wages?!

By making adjusted losses of around £40M .....

Reading FC - Â£30m loss to finish 20th in Championship on 11:51 - May 18 with 2260 views

Mr_J

That's pretty shocking how its possible to spend that much on achieving absolutely nothing. I keep saying this ad nauseam but football really is broken at the top level and needs change. Unfortunately Bury's demise seems to be forgotten by most and it will take a larger club going under for the message to hit home.

It's not nice to say this but I really hope it's Reading that goes under rather than a proper club.

Reading FC - Â£30m loss to finish 20th in Championship on 11:54 - May 18 with 2246 views

footers

Reading FC - Â£30m loss to finish 20th in Championship on 11:51 - May 18 by Mr_J

"how its possible to spend that much on achieving absolutely nothing."

Derby seem to pull this trick off every single season.

	footers QC - Prosecution Barrister, Hasketon Law Chambers
Poll:	Battle of the breakfast potato... who wins?

Reading FC - Â£30m loss to finish 20th in Championship on 12:01 - May 18 with 2231 views

Dennyx4

The article does also show that Norwich speculated last season too. Risky strategy that paid off for them - Always wondered, how a team with no parachute payments could afford Rhodes on loan.

No surprise looking at the wage bills that Villa and Norwich went up - Sheff Utd, reasonably high up on that list too.

Also shows that we are not even competing wage wise with the clubs in the Championship with no parachute payments.

Reading FC - Â£30m loss to finish 20th in Championship on 12:27 - May 18 with 2189 views

Mr_J

Reading FC - Â£30m loss to finish 20th in Championship on 11:54 - May 18 by footers
"how its possible to spend that much on achieving absolutely nothing." Derby seem to pull this trick off every single season.

Which is hilarious.

But also sad that fans encourage and demand it. To be honest I haven't really missed football since Corona kicked off. I've missed going to Town games but that's more about getting out the house and visiting some new grounds this season. The rest of it (especially the premier league) feels like a circus and the money is putting me off.

Reading FC - Â£30m loss to finish 20th in Championship on 12:50 - May 18 with 2144 views

Chrisd

Reading FC - Â£30m loss to finish 20th in Championship on 09:39 - May 18 by Radlett_blue
If you assume a squad of 20 players, that means £2m each a year or getting on for £40k a week each. Beyond belief really, even if it includes non playing wages, loan fees etc.

Simon Jordan was talking about them recently on TalkSPORT regarding their spend on wages which is the equivalent of 205+% of their turnover, just ludicrous. The Championship is the league that needs the implementation of a wage cap more than most, the spending there is getting way out of hand, it's just not sustainable.

[Post edited 18 May 2020 12:59]

Poll:

Where are we going to finish?

Reading FC - Â£30m loss to finish 20th in Championship on 14:43 - May 18 with 2017 views

Ricard0

Reading FC - Â£30m loss to finish 20th in Championship on 12:50 - May 18 by Chrisd
Simon Jordan was talking about them recently on TalkSPORT regarding their spend on wages which is the equivalent of 205+% of their turnover, just ludicrous. The Championship is the league that needs the implementation of a wage cap more than most, the spending there is getting way out of hand, it's just not sustainable. [Post edited 18 May 2020 12:59]

Wage cap has no chance of being implemented as long as parachute payments exist. If it was, every club relegated from the PL would fall foul of the wage cap due to the astronomical contracts of ex-Prem players.

Reading FC - Â£30m loss to finish 20th in Championship on 14:52 - May 18 with 1997 views

Radlett_blue

Reading FC - Â£30m loss to finish 20th in Championship on 12:50 - May 18 by Chrisd
Simon Jordan was talking about them recently on TalkSPORT regarding their spend on wages which is the equivalent of 205+% of their turnover, just ludicrous. The Championship is the league that needs the implementation of a wage cap more than most, the spending there is getting way out of hand, it's just not sustainable. [Post edited 18 May 2020 12:59]

The Championship abandoned (or hugely relaxed) its Financial Fair Play rules after enough clubs complained that they were being prevented from "investing" that was necessary to compete with the relegated PL clubs, armed with their vast parachute payments. I thought this was a bad decision & it's basically led to an increasing number of clubs spending unsustainable amounts. The present crisis - with probably no crowds this year - will show how ridiculous the whole thing is as without massive pay cuts or huge injections from owners, most of the Championship clubs will run out of money.

Poll:

Should horse racing be banned in the UK?

Reading FC - Â£30m loss to finish 20th in Championship on 14:57 - May 18 with 1985 views

C_HealyIsAPleasure

Reading FC - Â£30m loss to finish 20th in Championship on 12:01 - May 18 by Dennyx4

Those 3 clubs totals will be inflated due to promotion bonuses - Sheffield United in particular are typically much lower in these tables and hardly spent hugely since the last ‘normal’ accounts were published

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Reading FC - Â£30m loss to finish 20th in Championship on 16:57 - May 18 with 1863 views

Dennyx4

Reading FC - Â£30m loss to finish 20th in Championship on 14:57 - May 18 by C_HealyIsAPleasure
Those 3 clubs totals will be inflated due to promotion bonuses - Sheffield United in particular are typically much lower in these tables and hardly spent hugely since the last ‘normal’ accounts were published

Thanks I hadn't thought about promotion bonuses - makes a bit more sense.

Be interesting to know how much is bonus for promotion.

Our salary budget overall compared to other teams, does illustrate why we didn't compete last season.

Reading FC - Â£30m loss to finish 20th in Championship on 18:52 - May 18 with 1742 views

tractorboy1978

Reading FC - Â£30m loss to finish 20th in Championship on 14:52 - May 18 by Radlett_blue

You are now allowed to lose up to £39m over a 3 year period. Bonkers. And even if clubs are in breach they find a loophole (sell the stadium to the owner etc).

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