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QPR accounts 12:58 - May 22 with 12543 views

Just released

Losses increased due to impact of covid (no crowds) and no parachute payments

QPR’s operating losses increased by 43% in 2019/20 to £328,000 a week @AndyhHolt as combination of end of parachute payments and Covid-19 impact the club #QPR pic.twitter.com/K2o2yKtjHb
— Kieran Maguire (@KieranMaguire) May 22, 2021

QPR accounts on 14:01 - May 22 with 8741 views

themodfather

one assumes many clubs will lose lots of revenue this season and most of last, forgive my ignorance here, will this be a "tax write off"?

QPR accounts on 15:18 - May 22 with 8468 views

derbyhoop

Even if you add in the revenue stream from S/Ts and match day attendance, the club is barely covering its cost of sales. And that's before the administration side.

How much of the EZE transfer, if any, was included in the revenue figure?

"Travel is fatal to prejudice, bigotry and narrow-mindedness, and many of our people need it sorely on these accounts. Broad, wholesome, charitable views of men and things cannot be acquired by vegetating in one little corner of the Earth all one's lifetime." (Mark Twain) Find me on twitter @derbyhoop and now on Bluesky

QPR accounts on 15:24 - May 22 with 8422 views

losethedrum

QPR accounts on 15:18 - May 22 by derbyhoop
Even if you add in the revenue stream from S/Ts and match day attendance, the club is barely covering its cost of sales. And that's before the administration side. How much of the EZE transfer, if any, was included in the revenue figure?

None of the Eze transfer is included , as these figures are for up to end of May 2020 ie 2019/2020 accounts .

QPR accounts on 15:27 - May 22 with 8401 views

Roller

QPR accounts on 15:18 - May 22 by derbyhoop
Even if you add in the revenue stream from S/Ts and match day attendance, the club is barely covering its cost of sales. And that's before the administration side. How much of the EZE transfer, if any, was included in the revenue figure?

None, these accounts are up to May 20, Eze was sold in August.

The end of parachute payments drop broadcasting rights from two thirds of our revenue to under half and push wages up to 110% of revenue.

Player amortisation has dropped from over £4m the previous season to £600k. amazingly the book value of our squad is only £55k - or one Liam Kelly.

The 2019/20 season is being assessed in conjunction with the 2020/21 season for FFP. If that was not the case we would have had over £5m headroom using an estimated £4m for disallowable costs and a further £2m for Covid costs.

[Post edited 22 May 2021 16:07]

QPR accounts on 15:42 - May 22 with 8321 views

kensalriser

QPR accounts on 14:01 - May 22 by themodfather
one assumes many clubs will lose lots of revenue this season and most of last, forgive my ignorance here, will this be a "tax write off"?

You don't pay no tax when you don't make no money! But you can carry losses forward for the unlikely day when QPR is in the black.

Poll:

QPR to finish 7th or Brentford to drop out of the top 6?

QPR accounts on 17:46 - May 22 with 7945 views

thehat

Thank god we have the owners we do - Continuing to fund the losses then write it off by way of share allocation.

I remember those dark days of a £10M ABC loan that we struggled to pay the interest on.

QPR accounts on 08:24 - May 23 with 7430 views

Roller

Other points of note from the accounts:

Confirmation that the £4,462,000 loss recorded as Loss on disposal of asset under construction is writing off the expenditure relating to Warren Farm.

Shareholder financing was reduced from that in 2018/19. £7.4m as opposed to £11.4m

The club did take advantage of the loans made available by the EFL to help with Covid to the tune of £584,000, but still were able to increase their commitment to the community trust.

And from the post report events:

Heston was bought for £4,500,000. Thank you Ruben

Dickie, Dykes, Willock, Kelman, Walsh and Bonne cost a combined total of £7,003,000 of which £1,165,500 is contingent on future events.
I wasn't aware that Bonne was only on loan until January this year when the permanent transfer was completed.

[Post edited 23 May 2021 8:41]

QPR accounts on 08:05 - May 24 with 6858 views

superhoopdownunder

More information and analysis from Swiss Ramble

Queens Park Rangers 2019/20 financial results covered a season when they finished 13th in the Championship, an improvement on the previous year’s 19th place, though the campaign was disrupted by COVID-19. Some thoughts in the following thread #QPR
— Swiss Ramble (@SwissRamble) May 24, 2021

QPR accounts on 08:33 - May 24 with 6777 views

Jeff

Worth bearing in mind that this was the season of Wells and Hugill, on top of final years for high earners such as Hall and Pugh, which almost certainly bumped up our overall wage to income ratio.

I guess the takeaway from this is that the line is still trending down, but at a much shallower rate than many other clubs…

Can we not knock it?

QPR accounts on 08:46 - May 24 with 6734 views

hantssi

Interesting that the only clubs to show profit in the Swiss Ramble thread were Sheff Weds and WRDC!

QPR accounts on 09:27 - May 24 with 6646 views

Antti_Heinola

Oi, Luton manager:

#QPR only spent £55k on player purchases in 2019/20, which is unsurprisingly the lowest in the Championship, miles below #LUFC £46m, WBA £34m, Brentford £31m and Bristol City £26m. For some more perspective, even newly promoted Luton Town spent £2m.

Big spending Luton ;)

(I'm aware this was a different season)

Bare bones.

QPR accounts on 10:27 - May 24 with 6419 views

SimplyNico

QPR accounts on 08:46 - May 24 by hantssi
Interesting that the only clubs to show profit in the Swiss Ramble thread were Sheff Weds and WRDC!

As SR says, "... some clubs’ figures have been boosted by the sale of stadiums, especially #DCFC £40m, #SWFC £38m ".

That probably explains the profit there

QPR accounts on 10:41 - May 24 with 6343 views

Trom

QPR accounts on 15:27 - May 22 by Roller

[Post edited 22 May 2021 16:07]

The book value of the squad is not the same thing as market value.

Book value (just means balance sheet value) will be unamortized transfer fees. When you sign a player the transfer fee is capitalized (add to balance sheet assets) and then amortized (released to the income statement as an expense) over the contract of a player.

So if you bought a player for £6m on a 3year contract initially the asset would be £6m but that would reduce by £2m for each year of their contract, (i.e. £4m at the end of year 1). What you'd see in the profit or loss account is an expense of £2m for each year of the contract.

So given we haven't been paying large amounts for transfer fees in recent years it's not surprising that the book value of the squad is not that high.

QPR accounts on 10:50 - May 24 with 6320 views

swisscottage

QPR accounts on 08:24 - May 23 by Roller

[Post edited 23 May 2021 8:41]

That's looking good business.

Dickie, Dykes, Willock alone should now be worth at least 15 million between them after just one season?

And if they continue to progress £30 to 40mil by the end of next season.

QPR accounts on 11:52 - May 24 with 6100 views

LazyFan

QPR accounts on 10:50 - May 24 by swisscottage
That's looking good business. Dickie, Dykes, Willock alone should now be worth at least 15 million between them after just one season? And if they continue to progress £30 to 40mil by the end of next season.

It gets better when you try and break it down like so:

Dickie 2m
Dykes 2m
Willock 0.75m

Sure it's all guesswork, but from press reports, we can guess the above would be close.
Then we can guess at the rest.

Kelman 0.5m
Walsh 0.5m

This leaves for Bonne.
Bonne 1.25m
Which is way below the reported £2m elsewhere and means we bought for him about the right amount.

Dickie £2m
Dykes £2m
Willock £0.75m
Kelman £0.5m
Walsh £0.5m
Bonne £1.25m
= £7m

Along with around £3m for loans and frees like Thomas, we spent around £10m of the Eze money already but invested it wisely to improve the team, which it certainly did.

Moneyball you say? Your not the only ones!

zzzzzzzzzz

QPR accounts on 12:27 - May 24 with 5983 views

Myke

QPR accounts on 11:52 - May 24 by LazyFan

Do you mean 'up front' or with 'add ons'. In Dykes case we may eventually pay 2m when linked to appearances/goals and international appearances. But no way did they pay that up front. I guess we will see in next years accounts

QPR accounts on 12:49 - May 24 with 5869 views

bosh67

QPR accounts on 12:27 - May 24 by Myke
Do you mean 'up front' or with 'add ons'. In Dykes case we may eventually pay 2m when linked to appearances/goals and international appearances. But no way did they pay that up front. I guess we will see in next years accounts

I think you are right. As far as I know we paid between half and two thirds of the 'advertised price' on Dykes, Dickie, Bonne, Willock, Kelman etc with the 'full value' being for example on Dykes of around £2m.

So the estimated £7m is probably nearer £4.5m. We got £19m for Eze but I think that is with add-ons (not the sell on clause) and we got about £14.5m+ up front?

	Never knowingly right.
Poll:	How long before new signings become quivering wrecks of the players they were?

QPR accounts on 12:56 - May 24 with 5817 views

dmm

I thought a transfer fee was paid over the whole period of the player's contract. So if Dykes cost £2m and has a 4 year contract it amounts to £500k per year.

QPR accounts on 13:12 - May 24 with 5747 views

Trom

QPR accounts on 12:27 - May 24 by Myke
Do you mean 'up front' or with 'add ons'. In Dykes case we may eventually pay 2m when linked to appearances/goals and international appearances. But no way did they pay that up front. I guess we will see in next years accounts

Additional payments linked to certain milestones being met would be called "contingent consideration". As the name suggests the additional payment is contingent on the goals being met. I believe at the date of the transfer the total transfer fee included in the balance sheet includes an estimate of contingent consideration likely to be paid. This element of the transfer fee will then be adjusted up and down in subsequent periods based on the likelihood of the milestones being met. Note that there is a lot of subjectivity in this.

QPR accounts on 13:13 - May 24 with 5735 views

terryb

QPR accounts on 12:56 - May 24 by dmm
I thought a transfer fee was paid over the whole period of the player's contract. So if Dykes cost £2m and has a 4 year contract it amounts to £500k per year.

It doesn't matter when the transfer fee is paid & it definitely doesn't have to be over the length of the contract. Some clubs would insist that all of the payment is paid immediately, especially those further down the pyramid.

The amortisation is over the length of the contract though. Therefore, if we paid £2m for Dykes, at the end of this season his asset value would be £1.5m with £500k moving to the P&L account as a loss.

I'm not sure how the "add on's" work, but assume that they are added to the asset value when they apply & have amortisation over the rest of the contract period.

EDIT.
Sorry, I've just read your posting again & realised that you were stating that the asset value would decrease by £500k per year rather than we would be paying Livingston that amount per year.

[Post edited 24 May 2021 13:15]

QPR accounts on 13:23 - May 24 with 5686 views

BklynRanger

QPR accounts on 09:27 - May 24 by Antti_Heinola
Oi, Luton manager: #QPR only spent £55k on player purchases in 2019/20, which is unsurprisingly the lowest in the Championship, miles below #LUFC £46m, WBA £34m, Brentford £31m and Bristol City £26m. For some more perspective, even newly promoted Luton Town spent £2m. Big spending Luton ;) (I'm aware this was a different season)

Who did we buy for £55k - Tony Thorpe?

QPR accounts on 13:39 - May 24 with 5606 views

Benny_the_Ball

On the face of it an increase in losses sounds discouraging but when you break it down it's not all bad news. Revenue was bound to fall thanks largely to the end of parachute payments and a one-off Warren Farm write-off. However expenses were cut by 24%, profit on player sales doubled (even without the Eze transfer) and the club didn't 'sell' its stadium. I expect another sombre set of results for 2020/21 but if the board continue to control costs and make the model work, going forward there are reasons to be optimistic.

One question I do have, however, regards Warren Farm. Given that QPR did not own Warren Farm and development never really got going, what on earth did they spend £4.5 million on?

[Post edited 24 May 2021 13:40]