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Huge losses at Reading

Reading had an operating loss of £40.6m in 2018/19, which is after taking into account £1.7m of management charge income to another group company and £3m loan fee for Sone Aluko to a club controlled by Reading owners. Without these losses would have been over £45m, reports Kieran Maguire of the PriceofFootball.

Reading reduced losses to ‘just’ £30m through player disposals and selling training ground to club owners for £13m at a profit of over £8m. The previous season Reading undertook a similar exercise with the Majedski Stadium.

Reading did not receive any cash for the sale of the training ground, it was offset against the sum due to owners, who put in £28m of shares and increased loans by £6.5m. Reading are paying rent of £1.5m a year for the Majedski Stad after selling the stadium for £26.5m.

Reading’s wage bill increased by £5.4 million in 2018/19. Excluding the unusual loan fee Reading therefore paid £225 in wages for every £100 of income which is a Championship record, beating Birmingham’s £202 under Harry Redknapp.

In terms of player trading Reading bought players for £7.7m, had sales of £6.3m.

Curiously Reading now own a property company (RFC Bearwood Ltd) that appears to have made profits of nearly £5m in 2018/19.

Kieran Maguire notes: 'Since 2008/9 Reading have had one year in the Premier League and six years of parachute payments. Their income over the period was £332m but wages were £337m, leading to an operating loss of £183m over the period, which works out as a loss of £319,000 every week, for 11 years.

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