'Awful set of accounts for Reading'

Former days at Reading.   Elm Park on a winter's day.

The authoritative Swiss Ramble has produced an analysis of Reading's 2018/19 financial results, when their loss widened from £21m to £30m, despite some once-off disposals.  He has also produced a two page financial fact sheet available on his twitter account @SwissRamble.

the Swiss Ramble states, 'This is an awful set of accounts for Reading, which would have been even worse without many exceptional sales. Like many other Championship clubs, funding from the owners is vital, though this will not help meet FFP targets. Manager Mark Bowen has a tough task on his hands.'

Gross debt rose £6m from £62m to £68m, almost entirely owed to the club’s owners. This has nearly tripled from £25m in 2011.

The Royals made a large £32m cash loss from operating activities in 2018/19, then spent £1m on players (net) and £1m capital expenditure. This was funded by £35m from the owners (£28m shares and £6m loans).

The Swiss Ramble notes, 'My model suggests that Reading are there or thereabouts in terms of FFP compliance, as they can exclude academy, community & infrastructure (estimated at £5m a year). Whether they pass or fail depends on whether EFL allows £11m of loan write-offs and investment disposals.'

He adds, 'If these once-off items are excluded, Reading would be £4m over the £39m losses allowed in the 3-year monitoring period, which is probably why they were given a soft transfer embargo. However, they would definitely not have been compliant without £15m from property sales.'