| Where Is The Money Coming From? 10:19 - Aug 15 with 4007 views | BazzaInTheLoft |
I’m not complaining too much, because we’ve made some good signings in my opinion, but two years ago we were playing Drewe and Gubbins because we were skint.
What’s changed? Is it a new FFP cycle or something? Or are we already leaning into the potential Eze money?
This is always a niggling doubt for me. |  | | |  |
| Where Is The Money Coming From? on 14:42 - Aug 15 with 1060 views | Padulas_Shampoo |
As James has pointed out - Assuming we went all the way to the P&S wire at the end of the 2024 accounts, and assuming disallowable costs at a rate that gets us within the £39m loss limit, the last three years of losses would have been spread as:
2022: -£15.8m
2023: -£13.9m
2024: -£9.3m
For the next set of accounts, that 2022 season drops off which literally means we'd be able to spend the difference between 2024 and 2022 losses (£6.5m) this year and stay within the limit.
Doing so would be foolish of course as it would give us another lumpy year which will become a liability when the £9.3m year drops off. Instead, if you take your upper allowable losses as £13m - the average allowable loss per year - it still gives us £3.7m in additional budget over last year. This assumes of course that neither your costs nor income have changed year on year. If we've made more commercially or spent less on wages, or both, that would add to that budget further.
Also bear in mind when you sign a player for £3m over a 4 year contract, you'll only recognise £750k of spend this year but when you sell a player for £3m you recognise all the income immediately.
So if we already had £3.7m in additional losses available and sold Kelman for £2m, we'd have £5.7m to spend this year as long as it didn't increase long term costs (wages) and still stay within a sustainable loss limit of £13m per season. If we signed Kone for £3m over 4 years, it would have only cost £0.7m of that £5.7m annual additional budget.
Quite cleverly, QPR have been on a bit of a repetition of message assault for a number of years now about 'sustainability' and the owners losing £2m a month of their money to prop the club up. I say clever because it's created a certain level of paranoia / skepticism and the assumption that we're perennially skint.
Well... the allowable losses are the same for every single club and owner in the Championship, so whilst all those clubs are willing to push the £39m loss limit, that £2m monthly bill is the going rate in order to own a Championship club. That bill never comes down if you want to stay competitive because so many teams in the division are willing to pay it.
Increasing revenue streams doesn't or shouldn't discount that bill, it only increases the budget you have to spend without increasing it. This - for me - should really be the message and not one of 'sustainability', otherwise we will be relegated very quickly because financial sustainability doesn't exist in the Championship.
When you look at the numbers like that, we're really not overspending relative to our peers. The best sort of signing is cash heavy and wage light as transfer fees eventually drop off the P&S cycle but a higher wage bill does not. So far the recruitment of Kone and Poku for instance has felt pretty good and on that basis.
I would personally be more worried if we weren't spending this sort of money more than I am that we are. It's just the nature of the beast that the Football League and the Premier League have created and if we opt out of it we opt out of the division. [Post edited 15 Aug 14:42]
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| Where Is The Money Coming From? on 21:20 - Aug 15 with 851 views | 1JD |
| Where Is The Money Coming From? on 11:24 - Aug 15 by Wilkinswatercarrier |
The increased TV money, the stands/ground/training facility sponsorship, the tie ins that keep being announced. They would have had a significant impact.
Coming out of FFP cockup with Johansen/Austin.
Big reduction in wages.
We also haven't spent much on transfer before this Sumner for the past few years. Maybe Varane.
I had heard there was quite a bit more money than we assumed. |
The club loses money. Multi-millions. That may have come down from 24m to 12m, and I suspect it looks like that at the next set of accounts, but it’s a still a huge loss making business. The money is coming from its primary benefactor- Ruben. Which is why all other shareholders are getting diluted. He is the only one bank rolling the club. That’s where the money is coming from |  | | |
| Where Is The Money Coming From? on 12:42 - Aug 16 with 655 views | Tonto |
A few other thoughts:
The wages Colback and Fox were on have probabbly covered all of our younger signings, so there isnt much change sespite the number and quality increasing.
The net transfer fees paid is onky around £2-3m given we got £3M for Kelman
Of all the things thrown at Nourry, lack of finacial.planning isnt one of them. I have a fewling this has all been planned. |  |
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| Where Is The Money Coming From? on 13:29 - Aug 16 with 546 views | MedwayR |
Don't forget we're not (yet) spending money on loan fees either. |  |
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| Where Is The Money Coming From? on 18:10 - Aug 16 with 440 views | Hastings_Hoops |
Don’t forget we sold Kelman for circa £4m and add to that the likelihood that Butrepp/Kone etc are probably earning significantly less than Colback, for example - over four years, that creates a saving which probably covers most of his transfer fee? …repeat that a few times and bob’s your uncle. |  | | |
| Where Is The Money Coming From? on 19:34 - Aug 16 with 329 views | kernowhoop |
| Where Is The Money Coming From? on 18:10 - Aug 16 by Hastings_Hoops |
Don’t forget we sold Kelman for circa £4m and add to that the likelihood that Butrepp/Kone etc are probably earning significantly less than Colback, for example - over four years, that creates a saving which probably covers most of his transfer fee? …repeat that a few times and bob’s your uncle. |
Latest gossip and Eze's omission from the CP squad tomorrow, suggests that we may be getting a few bob from Selhurst Park before too long. | | | |
| Where Is The Money Coming From? on 23:01 - Aug 16 with 185 views | GloryHunter |
Wrexham seem to be splashing the cash. Are the owners allowed to just plough in money like that, or will they get caught if they don't get promoted to the PL? |  | | |
| Where Is The Money Coming From? on 23:11 - Aug 16 with 167 views | BazzaInTheLoft |
| Where Is The Money Coming From? on 23:01 - Aug 16 by GloryHunter |
Wrexham seem to be splashing the cash. Are the owners allowed to just plough in money like that, or will they get caught if they don't get promoted to the PL? |
Apparently they get a ton of commercial revenue from the states through the TV series etc. | | | |
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| Where Is The Money Coming From? on 23:31 - Aug 16 with 123 views | ManinBlack |
We are still paying peanuts when you compare it to Birmingham and Wrexham. Didn't Wrexham spend £10million this week on a new signing? |  | | |
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