Skip to main content

QPR losses up significantly

The authoritative Swiss Ramble reviews the finances of QPR: https://swissramble.substack.com/p/qpr-finances-202122?utm_source=substack&utm_medium=email

QPR’s pre-tax loss significantly increased from (restated) £4.1m to £24.7m, mainly because profit on player sales fell £17.4m to just £0.2m. Revenue rose £7.6m (52%) from £14.5m to £22.1m, as a result of COVID restrictions being lifted and business returning to normal.  The revenue growth was eaten up and more by operating expenses increasing £10.8m (30%) to £46.4m. 

QPR’s cost base shot up, as the club appeared to return to the dark days of gambling on promotion. The wage bill increased £3.4m (14%) from £24.2m to £27.6m.   QPR’s £24.7m loss is the second highest reported to date in the 2021/22 Championship, only surpassed by Bristol City £28.5m.

Since Tony Fernandes arrived in August 2011, total losses have amounted to £254m – or £314m if we exclude a £60m loan write-off in 2014.

Since Tony Fernandes arrived at QPR, the owners have put in an incredible £300m, though most of that came in the first five years (£222m). That said, they still stumped up £78m in the last six years. The majority of this funding was used to cover operating losses of £198m with £64m spent on player purchases (net) plus £26m on infrastructure. 

In the 10 years up to 2021, QPR’s owners put in more money than any other club in the Championship. Their £283m contribution in this period was almost £90m more than the closest challengers, namely Stoke City £195m, Cardiff City £194m and Bristol City £181m.

QPR have to compete with clubs with significantly higher wage bills, a number of whom receive tens of millions in parachute payments from the Premier League. As an example, the wage bills at Watford and Norwich City in 2020/21 were £68m and £67m respectively, around £40m more than QPR.

QPR pushed the boat out in 2021/22 in an attempt to reach the play-offs, with a hefty increase in the wage bill, allied with no major player sales, but that gamble clearly failed to pay off.  This yet again highlights the dilemma for owners in the Championship, as they struggle to compete against “parachute payment” clubs with far larger budgets, especially as Rangers could hardly be accused of massive spending.


Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...
Post a Comment
Read more