Mr Popodopolous Posted April 23, 2021 Report Share Posted April 23, 2021 Matt Hughes Ahead of the Game. Quote Reading face being charged for breaching the EFL’s spending rules if they are not promoted to the Premier League this season. The club announced operating losses of £43.5million for the year ending June 2020 last week after a loss of £40.7m the previous year, and with the full impact of the pandemic yet to be reflected in the accounts there is little prospect of their financial position having improved this season. EFL rules state losses must be limited to £39m over three seasons. Whatever happened to the in-season stuff...thought about their financial position and there are a few bits I have wondered about as to how they might save their position...I also wonder if Reading FC or Renhe Accounts are being used. I'll also correct myself a little- it was the old Training Ground they sold, the new one is either still underway or I dunno exactly how it's being accounted for- in addition to the club and Renhe, there is also RFC Bearwood Limited and RFC Prop Co Ltd. Anyway their position...ways they may yet be able to correct it- IMO. Also may depend on EFL conditions, ie Birmingham were set the binding Business Plan which wasn't in fact an 'Absolute Obligation' to sell Players in January- EFL could well have got that overturned on appeal from 'Best Endeavours' to 'Absolute Obligations'- not so much for the Birmingham case as they've clearly been reforming but as a legal/Regulatory Principle moving forward. That's what they were really keen on with that appeal. How could they try and solve it- and when I say solve I don't mean solve to spend again, but solve to avoid points etc, but keep working under a Business Plan...buy time to downsize basically albeit under heavy restrictions, one in one out, wage limits for free agents/loanees etc while having to sell many good players. Not a deduction but that alone can weaken sides significantly. Stoke City style Impairment due to Covid- say they claim that 1/3 to 50% of Net Book Value could be written off to Covid-19 Costs- in order to try and get a bigger Profit on Disposal in the Summer. ie Fee-Covid Impaired Asset-Remaining Book Value=A higher Profit on Disposal. How do you justify that though, given their notable improvement in the League this year- clearly Book Values can't increase (with the possible exception of under Melonomics ) but are the underlying on-field conditions adequate to justify a slashing as set against the economic conditions caused by Covid. If the Rules enforced right, June 30th- that clock is ticking...! Property. I mentioned their assorted and Related Companies above. RFC Bearwood Limited 2019 Profit- this appears to have been Residential land around Bearwood, which is their new/current/ongoing Training Complex. Could they sell the Training Ground by 30th June 2021? Given they seemed to make a £4.2m Profit on Land at Cost or Valuation at £595k, how much would an entire Training Complex be worth in that neck of the woods? Seems to be listed at Cost tbh- Carrying Amount is listed at £39,814,269 as of June 2020...sell current Training Ground to owner? Quite unsure how RFC Property Co Limited can benefit them tbh...but there was talk of Reading FC applying to build 140 Properties (!?) on the site of the old Training Ground. Is this what Football has become- a club with a side Property Business!? Could be for the Owners benefit and not the club, could be ex Owners- but given that the club appear to have sold that land to the Owner, how could they now potentially benefit from it? Link to comment Share on other sites More sharing options...
Red_Alligator Posted April 23, 2021 Report Share Posted April 23, 2021 Could our new strategy be to get promoted by finishing top of the FFP League I wonder???.... Link to comment Share on other sites More sharing options...
Davefevs Posted April 23, 2021 Report Share Posted April 23, 2021 29 minutes ago, Mr Popodopolous said: Matt Hughes Ahead of the Game. Whatever happened to the in-season stuff...thought about their financial position and there are a few bits I have wondered about as to how they might save their position...I also wonder if Reading FC or Renhe Accounts are being used. I'll also correct myself a little- it was the old Training Ground they sold, the new one is either still underway or I dunno exactly how it's being accounted for- in addition to the club and Renhe, there is also RFC Bearwood Limited and RFC Prop Co Ltd. Anyway their position...ways they may yet be able to correct it- IMO. Also may depend on EFL conditions, ie Birmingham were set the binding Business Plan which wasn't in fact an 'Absolute Obligation' to sell Players in January- EFL could well have got that overturned on appeal from 'Best Endeavours' to 'Absolute Obligations'- not so much for the Birmingham case as they've clearly been reforming but as a legal/Regulatory Principle moving forward. That's what they were really keen on with that appeal. My EFL twitter group reckon they’re in for a points deduction Link to comment Share on other sites More sharing options...
Mr Popodopolous Posted April 23, 2021 Report Share Posted April 23, 2021 11 minutes ago, Davefevs said: My EFL twitter group reckon they’re in for a points deduction I'm thinking so too. Their owner has persistently turned down bids for players in addition- totally and utterly self-inflicted. Danny Loader a decent example- he actually left on a free or for minimal compensation. Also in recent years Moore, Swift and I think Meite- and those are just those we know about. Even when Fixed Assets Sold at a Profit (which I disagree with verbatim for FFP), they didn't use it to sell players in tandem and restructure like say Birmingham from 2019 onwards- they used it to try and keep pushing- signing Joao and Puscas not so long after a soft embargo and then Summer 2020 though it was heavily delayed, Ejaria was eventually permitted...shades of Pedersen? Feels an Aggravated Breach if anything. Link to comment Share on other sites More sharing options...
Mr Popodopolous Posted August 27, 2021 Report Share Posted August 27, 2021 Chelsea appear to be doing them a very nice favour. Baba Rahman, wages £50k per week, they're covering most of. Also linked with Halilovic on a free and a CSKA Moscow striker on loan...Halilovic potential contract length not yet disclosed but fairly sure only allowed 1 year deals under the Regs... ...Charges? Points?? EFL site still says they have breached Profit and Sustainability Regs ie FFP. Signing a £50k per week LB on loan, albeit with Chelsea covering most wages is rather odd in the circs. Seems very strange unless it's the prelude to charges or an agreement whereby an acceptable in line with the breach number of points docked in exchange for easing bits and staffing up. https://www.efl.com/-more/governance/embargoes/ Link to comment Share on other sites More sharing options...
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