Accounts Overview For The Year Ending May 2006

A reminder that this was the second Season in the Championship and the year started withThe Boardhiking up the Season tickets. The Season started well until the alleged ‘gun incident’ in August and was then followed by the Board Room coup. Mark Devlin was made redundant. Gianni Paladini took control and immediately bought Richard Langley and Steve Lomas. Ian Holloway went on gardening leave and Gary Waddock took over.

The accounts show a loss of £3,344,000 for the year. This is blamed by the Board on an increase in players salaries and player support costs. They also admit that the team had a disappointing end to the Season.

Losses before tax were £2,358,000 (2005 Р£1,812,000)

Turnover increased from the previous year to £9,292,000 (2005 Р£8,756,000) This was mainly due to increased match day receipts of £5,350,000 (2005 Р£4,943,000) Sponsorship and commercial activities were up to £2,320,000 (2005 Р£2,055,000)

Administrative expenses increased to £3,471,000 (2005 Р£3,096,000) This all meant that the total costs increased by approximately £1.2m

The debtors include £2,613,000 owed for taxation and social security. The auditors report that the Board are seeking to refinance the ABC loan and also a way to pay the Inland Revenue.

Net assets at the end of the year were £897,000 (2005 Р£1,507,000).

Average attendances were down
The major Shareholdings are shown as:

Antonio Caliendo17.5%
Franco Zanotti 19.9%
Gianni Paladini14.7%
Dunga 10.0%
Kevin McGrath8.7%

Gianni Paladini was paid £75,000 for his consultancy services and an un-named Director was also paid £30,000

Staff numbers increased by one and were up to 82. Wages also increased by approximately £600,000.

The freehold of the Ground is valued at ¬£19.2m (2005 -¬£17.3m) The Company has now been loaned ¬£13.5m (2005 – ¬£10.9m) There are now six different Director’s loans and two other loans, all at interest rate of around 7.5% or repayable in shares.

Post balance sheet events show that Dan Shittu was sold for an initial £1.6m, Dexter Blackstock was bought for £500,000 and Zesh Rehman for £250,000. There is no mention of the other player bought in at the time, Nick Ward.

The retained losses (profit and loss account) are now £20,706,000 (2005 Р£17,805.000)

7 thoughts on “Accounts Overview For The Year Ending May 2006

  1. I was under the impression that QPR Chairman Gianni Paladini had said things such as:

    “The Club is in a better financial position than it has been in for a number of years. Things are still tough, but we have reduced the annual debt by millions and intend to reduce it further” (August 1, 2006)
    or ”
    Q:How much money will we lose this season and next?
    A: This season, ¬£1.7 million. Next season I hope we can break even, maybe if we only lose two hundred or three hundred thousand pounds I’d be a happy man” (May 2006)
    “We are bringing the loss down every year and within a few years we hope to break even” (December 2005) or
    “The books will show that since I‚Äôve been here the loss will go down from ¬£4.5 million to ¬£2.5 million. Next year it will go down again to ¬£1.5 million” (Late 2005)or
    “The accounts for 2005 show a vast improvement on the previous years’ results and the current projections for 2006 show that there will be another sizeable reduction in the clubs’ net losses” (March 2006)

  2. Gianni Paladini РPaid £75.000 for consultancy services. Consultancy services my arse!

  3. I’ve done some analysis.

    Admin salaries are ¬£1,039,000 for 20 people. That gives an average of nearly ¬£52,000. Now, I would expect the Chief Financial Officer (and how many of them have there been in the last 12 months?) would be on a decent salary but what about the rest. I know London salaries are higher than the rest of the country but ¬£52k. Somebody’s riding a gravy train.

    Direct overheads were ¬£3,124,000. On what? Office costs were ¬£1,085,000. On what? Other Admin Expenses were ¬£740K. On what? Surely those figures can be reduced. It’s a football ground not a 5 star hotel or a rented luxury office block.

    Total cost of football related activities were £6,388 (see p16) but the total wage bill for all 82 employees was £6,341,000. Admin salaries (20 people) + 8 commercial people at £173K leaves 5,139,000 between 54 people. There are 12 in Community and Ground Staff so the football wage side should be around £4.75m Рan average of £113k or just over £2k per week. What else is included in the £1.5m of other football costs РHarlington, Coaches, Hotels? More relevantly, can anything be done to reduce it?

    What is worrying is that, even if we could renegotiate the ABC loan, saving around £300k and increase the attendances by 10% to around 14,800 we would only add around £600k to turnover. The bottom line figure would still show a loss of nearly £2.5m. The club is in real danger of running out of working capital.

  4. I would like to query the shareholding.

    3 companies.

    Which shareholders are combined to make one company out of ?

    Moorbound, Wanlock or Barnaby

    Antonio Caliendo…17.5%
    Franco Zanotti…… 19.9%
    Gianni Paladini… 14.7%
    Dunga…………… 10.0%

  5. 3 Companies.

    Zanotti = Wanlock, Paladini(Mrs)=Moorbound, Dunga=Barnaby. Caliendo=? Maybe Barnaby, Maybe Not. The shares that Bill Power owned where bought by Barnaby, but Caliendo now appears to be “interested” in them.

  6. ¬£3.5 m….
    how many free tkts do we give out??
    cut them and make em pay..we ain’t a charity.
    we need to clear some of the debts..bums on seat would help but thats too easy.
    the balloon must burst..why can clubs get by with these debts, yet if i”m late on a bank payment all hell breaks loose???

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