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.