Finances: Looking Forward to QPR's AGM...Looking Back at Last Year's AGM

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[NB: An interesting exercise is to search QPR Report for postings re Finances or Accounts

QPR shareholders will shortly be attending the club's Annual General Meeting (AGM) (Friday June 15). The AGM comes nearly two years (September 2005) after current Chairman Gianni Paladini replaced former Chairman Bill Power and nearly exactly three years (June 2004) since Paladini (initially through his wife) and Bill Power replaced former Chairman Nick Blackburn,Ross Jones and then CEO David Davies. See - BBC - June 24, 2004- QPR Chief Steps Down - Nick Blackburn Departs and BBC June 18, 2004 - Davies leaves QPR

The AGM comes in the aftermath of the recently-released Accounts ending May 31, 2006 which show another loss for the club: This time, approaching 3 1/2 million pounds.

In addition, there is the "notorious" ABC Loan, which has reached the half-way mark. Chairman Paladini's "Urgent Call for Help" re the ABC Loan (which comes a few weeks after QPR were in talks with Oldham Chairman Simon Blitz re assuming the ABC Loan).

And last weekend, there were messageboard posts about an email from the club to Fan Representatives about certain unpaid taxes. And Chairman Paladini spoke to a Sunday newspaper (but has not yet commmented on the club's official site) talking about unpaid VAT debts but assuring no threat to the club. Paladini soothes QPR fears See Also Fans Trust QPR1st re situation and email from QPR Director, Nick DeMarco Statement "Winding up order"

See Also: Rivals Clive Whittingham "
"Is this a(nother) wind up? ?"

Of course as a search of QPR Report shows, Chairman Paladini has previously spoken about "winding up" concerns re other bills. PAST REFERENCES TO "WINDING UP"

See ALSO: re QPR ACCOUNTS, debts and the ostensibly Improving Situation: Some past statements by Chairman Paladini QPR Report - Coming Week

QPR Holdings AGM Set for June 15


The recently-released accounts for year ending, May 2006 showed a loss of over 3 million pounds for the year ending May 2006.

QPR Accounts - Released May 2007 for Accounts- Year Ending May 2006

QPR1st has an analysis of the Accounts,w hich can be read at QPR1st

Previous Year Accounts
QPR Accounts - February 2007 - Accounts - Year Ending May 31, 2005

QPR Accounts - May 2005 -- Accounts Year Ending May 2004

For additional background re PastAccounts/Finances (and other matters), see
Boardroom Blues
QPR1st Trust

QPR1st's report on the 2006 AGM

QPR1st report on 2005 AGM

Some Statements by QPR Chairman Paladini About Past and Future Losses

April 2007 - Fan Consultative Meeting
5. Accounts update
5.1 Why haven't the accounts been filed with Companies House? We were told they would be filed by 31st March 2007?
GP replied that the accounts for the year end May 2006 have been filed; that they'll be in the public domain soon; and that the AGM will follow, citing the 21 day period that has to be given to inform shareholders of the meeting.

5.2 What does the total loss for the year stand at as we speak?
GP said that the loss is about the same as the last year, saying that we'd had to bring in playing staff, which added to the budget. QPR

March 2007
" When I took over at the club the losses were 4.5 million pounds - and now it is less than two [million pounds]. Next year we will probably break even and maybe even make a profit because the money from the players we sold this season will go into the budget for next year." - Interview with Gianni Paladini in The London Paper, March 14, 2007 by Matt Butler

March 12, 2007 - “....So many people said we would go into administration and it hasn’t happened. The debts have been reduced. “And I tell you this: QPR will make a profit next year – whatever division we’re in – and it will be the first time that has happened for many years. It will happen." - March 12, 2007 [Posted on Dave Barton's Queens Park Rangers FC Site(www.queensparkrangersfc.com )
David McIntyre - WE WON’T QUIT IF WE GO DOWN – PALADINI

August 1, 2006 - “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) QPR Official Site

June 2006 - Next season will see further improvements and we expect the losses fall to below £1m - a significant improvement on the years before I became involved with the club. ...
...We have put our finances in order, our losses will continue to fall towards a break even situation QPR Official Site

May 2006 - Q Rivals :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're hoping to go close to breaking even next season, we've reduced costs across the board. We're definitely heading in the right direction. QPR Rivals

March 7, 2006 -
Gianni Paladini has issued the following statement following recent inaccurate reporting.
The total value of the debt in the 2005 accounts (ie the sum of the current liabilities and the long term liabilities) is £18m.The total value of the same debt in the 2004 accounts was £18m.In other words no change, but this is definitely not the impression conveyed by the headline.
As most fans know the biggest item in the total debt is the £10m loan from the ABC Corporation which was entered into in 2002 several years before the current regime took over.
Current liabilities fell in 2005 as the debts to the Customs & Revenue were reduced and short-term loans to shareholders were repaid.
You should also be aware that £2.8m of the total "debts" is for income for the 2005/06 season that was banked before the 31st May 2005 and, in accordance with standard accounting practice, is included in current liabilities as deferred income.The bulk of this deferred income is for season ticket receipts, which is being released in the 2005/06 financial year.
This means that the high value of the early bird season ticket sales for both the 2004 and 2005 seasons have increased the "debt" at the club's financial year end.So rather perversely the increase in deferred income is a positive sign and not an indication of "misery" as heralded by the Evening Standard.
The Standard did state that losses for the year were £2.5m but neglected to mention that was an improvement of £1.8m on the two previous years.This improvement was all the more impressive as it was achieved despite losing the revenue from Fulham ground sharing deal. Running costs have been reduced and supply contracts have been renegotiated.
I know these figures are wrong because I am so intimately involved in both the day-to-day running of the club, and its financial strategy and support. Along with my trusted friend and chairman of QPR Holdings, Antonio Caliendo, we have dug into our own pockets to pay off the debts we inherited when we took over - debts that, quite frankly, would have forced the club into liquidation if they had not been paid.
...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.However the Evening Standard states that the projected losses for the current season "could be as much as £4m" and will not be revealed until March 2007....
The club is currently working on its projections for next season and the board of directors are looking for further revenue opportunities and further cost savings as the club works towards a break-even situation.A more detailed update will be given to shareholders at the forthcoming AGM and a summary will then published on the QPR website. QPR

Paladini in Late 2005 - QPR Net interview
Next month I’m at the AGM, we will send the letter out soon and it will be held in February.
I have to sit down with all the shareholders face to face and tell them what we’ve done and show them the books, the actual books, not the rubbish that people who think they know more than me come up with.
The books will show that since I’ve 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 .... Don’t judge me now, wait till you see it because it will all be there in black and white. Everyone is taking a shot at the moment but they are people who have their own agenda. They want us to fail, but if we fail then QPR fail..." QPR

March 2006 - “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)QPR

December 2005- “We are bringing the loss down every year and within a few years we hope to break even” (December 2005) Link

BBC - March 16, 2006
Paladini said: "Can anyone say QPR aren't in a better position than when I came in two years ago? "The losses are reduced and we are in a position to move forward. Everything is settled and we just want to get on with running the club. "This board have invested over £8m. Yes, some of that has been used to buy shares, but that is how much has been paid and that shows commitment." BBC March 16, 2006

December 29, 2005
"Thanks to some huge efforts in renewing its organization and bringing in some new investments, QPR are now sailing in safe waters. "We are optimistic when looking ahead for the New Year and for the whole of 2006, ...."Our hope and aim is that QPR will never again have to struggle against organizational confusion and financial distress that have badly hit the good name of our glorious club. "A special mention must go to Ian Holloway, who has shown his passion and devotion to the club and as someone who gives us positive hopes for promotion. "We are proud of our players and we are confident that we can continue to strengthen our team with some new arrivals at the beginning of the next year. QPR

QPR1st REPORTS

QPR1st's report on the 2006 AGM
"...losses will be estimated for the end of the 2006 season to be between £1.7m - £2m.....
CP said they were expecting to improve revenue whilst hoping that the heads at LR will increase.
He then spoke about losses in previous years, saying how in 2003 the losses had been £4m; in 2004 they were £3.4m; 2005 £2.5m; estimated losses for 2006 are £1.7m - £2m; and going forward the estimate for the year after would be a loss of £0.8m – though the hope was to break even eventually for this period. QPR1st

QPR1st Report on 2005 AGM - July 2005
[Pre-Paladini becoming Chairman]
"...It was explained that Gianni Paladini is now a Director and his wife Olga, who previously represented his interests, had stood down. He then went on to state that, despite the success of achieving promotion in 2003/04, from a business perspective the financial year ended 31 May 2004 was disastrous. He emphasised that the accounts covered a period when the old executive team was in place and there were now considerably less people employed by the club who were collectively doing a lot more work than previously.
Kevin and Chris both said that the draft accounts to 31 May 2005 were indicating a loss of £2.5m. In the current year to 31 May 2006 the recently prepared budgets had been drawn up on the basis that the club would break even. However, in reality a loss of somewhere between £500k to £1m is anticipated unless the club have a good cup run or some other similar windfall. .." QPR1st
QPR Report Compilation

2006 AGM

The previous AGM was in March 2006.
QPR's AGM Held - Detailed Report by QPR1st's Tracy Stent-
From QPR1st

QPR Holdings Ltd -AGM Report "March 19, 2006
Tracy Stent represented the interests of the Supporters Trust at the Annual General Meeting of QPR Holdings Ltd.
It was a fairly lively affair and Tracy has produced a report of the meeting which can be viewed/downloaded via the link below. The document is in MS Word format.After the AGM, QPR 1st received details of the loan agreement between Ross Jones and QPR holdings plc (from 2004) mentioned in the report,which he has given us permission to reproduce. ... QPR1st

[ brief AGM report in the Daily Mirror
Daily Mirror 18 March 2006 -
RANGERS 'STAY PUT' By Aidan Magee

QPR chairman Gianni Paladini has assured supporters the club will stay at Loftus Road.
Paladini (pictured below), thought to have been considering a switch to a site at White City, made the pledge as he and Brazil World Cup legend Carlos Dunga - a club director - faced angry fans at QPR's annual meeting.
They were upset by price-hikes, boss Ian Holloway's sacking, debts of £18m and director Antonio Caliendo's suggestion of a move from Shepherds Bush.
But Paladini said: "Antonio Caliendo doesn't speak English. If you asked him what he thought White City was, he would reply: 'Que?' We won't be moving and that's final." Mirror


And on the eve of the AGM:
BBC - March 16, 2006
BBC - Dunga will face QPR shareholders
Carlos Dunga will face shareholders at Queens Park Rangers' Annual General Meeting on Friday.
The former Brazil captain became a QPR director in 2004 as part of a Monaco-based group that later staged a boardroom coup at Loftus Road. Dunga did not attend board meetings prior to using his vote to help Gianni Paladini oust Bill Power as chairman. "I take my role as a director of QPR seriously and look forward to appearing in front of shareholders," said Dunga. "Myself and the other directors have put money into the club to help it survive and will continue to do so."
Paladini has faced scepticism from some fans since Power and chief executive Mark Devlin were removed following a series of boardroom disagreements. Rangers are heavily in debt and several behind-the-scenes changes have been made since Paladini took control along with Antonio Caliendo. Both men are former agents.
Italian businessman Franco Zanotti has also bought a major stake and Paladini has defended their running of the club.
Paladini said: "Can anyone say QPR aren't in a better position than when I came in two years ago? "The losses are reduced and we are in a position to move forward. Everything is settled and we just want to get on with running the club. "This board have invested over £8m. Yes, some of that has been used to buy shares, but that is how much has been paid and that shows commitment."
BBC

10 days before last year's AGM, the club issued this statement:

March 7, 2006 - QPR - CLUB STATEMENT -
Gianni Paladini has issued the following statement following recent inaccurate reporting.

Once again this club has been subjected to a barrage of pitifully inaccurate reporting in the London Evening Standard - and once again I am left with no option but to set the record straight in order that you, our true supporters, know exactly how QPR's finances stand.

The article in last Friday's edition should be seen in the light of the previous negative and misleading articles by the same author for which they had to print an apology and pay our solicitor's costs.

The total value of the debt in the 2005 accounts (ie the sum of the current liabilities and the long term liabilities) is £18m.The total value of the same debt in the 2004 accounts was £18m.In other words no change, but this is definitely not the impression conveyed by the headline.

As most fans know the biggest item in the total debt is the £10m loan from the ABC Corporation which was entered into in 2002 several years before the current regime took over.

Current liabilities fell in 2005 as the debts to the Customs & Revenue were reduced and short-term loans to shareholders were repaid.

You should also be aware that £2.8m of the total "debts" is for income for the 2005/06 season that was banked before the 31st May 2005 and, in accordance with standard accounting practice, is included in current liabilities as deferred income.The bulk of this deferred income is for season ticket receipts, which is being released in the 2005/06 financial year.

This means that the high value of the early bird season ticket sales for both the 2004 and 2005 seasons have increased the "debt" at the club's financial year end.So rather perversely the increase in deferred income is a positive sign and not an indication of "misery" as heralded by the Evening Standard.

The Standard did state that losses for the year were £2.5m but neglected to mention that was an improvement of £1.8m on the two previous years.This improvement was all the more impressive as it was achieved despite losing the revenue from Fulham ground sharing deal. Running costs have been reduced and supply contracts have been renegotiated.

I know these figures are wrong because I am so intimately involved in both the day-to-day running of the club, and its financial strategy and support. Along with my trusted friend and chairman of QPR Holdings, Antonio Caliendo, we have dug into our own pockets to pay off the debts we inherited when we took over - debts that, quite frankly, would have forced the club into liquidation if they had not been paid.

I need to say a few more words about Antonio at this point because the Standard has also intimated there is something dark and mysterious about his presence at the club. Antonio is chairman of our holding company, and I am chairman of the football club.

There is nothing murky or sinister about this two-man structure - it's exactly the same format that existed before we took over. We have no hidden agendas - if we did, we wouldn't have stuck around for so long, working so hard to get QPR's finances back on the straight and narrow.

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.However the Evening Standard states that the projected losses for the current season "could be as much as £4m" and will not be revealed until March 2007.

As the club has had no contact with the writer of this article we are left to ponder as to the both the source of his inaccurate statements and the motives behind them.

The club is currently working on its projections for next season and the board of directors are looking for further revenue opportunities and further cost savings as the club works towards a break-even situation.A more detailed update will be given to shareholders at the forthcoming AGM and a summary will then published on the QPR website. QPR

QPR OFFICIAL SITE - CONSULTATIVE MEETING
QPR Fans Consultative Group Meeting
Tuesday 13th February 2007 - 6pm, The Chairman's Suite, Loftus Road
Minutes
The following are the minutes taken from the initial QPR fans consultative group meeting, which was held at Loftus Road on the night of Tuesday 13th February. Those in attendance hope that this is of interest to all QPR fans everywhere.
In attendance: Gianni Paladini (GP) Chairman, QPR FC ~ Nick De Marco (NDM) QPR FC legal advisor, and Chair of initial meeting ~ Akin Yilmaz (AK) Club Financial Controller and Company Secretary ~ Pat Harrison (PH) Official Supporters Club ~ Karen Hampshire (KH) Official Supporters Club ~ Tracy Stent (TS) QPR 1st Supporters Trust ~ Stephen Dedridge (SD) QPR 1st Supporters Trust~ Victor Stephenson (VS) Friends of QPR ~ Spencer Schwartz (SS) Friends of QPR.

"....3 The 2005 accounts
AY started off by saying how at the AGM in March 2006, the accounts that were presented had not been signed off by the auditors. The changes of figures in the accounts that have just recently been filed are down to the subsidiary (Queens Park Rangers Football and Athletic Club) accounts that have now been done/finalised/filed. Geoff then intercepted by explaining that he has the facility for doing a search on Companies House which means that every time a new file appears or is updated on their website, he gets notified by an email and he then checks the website to see what has been updated. This allows him, and anybody else with this facility, to know the history of filing dates and he said that at the time when GP joined there were subsidiary accounts (QPRFAC) that were four years out of date. He said that AY is the first man to have brought those accounts up to date and explained about auditors; how they are basically an independent body of accountants who do an audit on company accounts; that they have to be fair; and with no skulduggery going on. He explained that the most important thing for any auditors is for them to be sure that the accounts they are signing off shows reasonable proof that the company is a going concern for the following year. He said that the note about this in the auditor's report had been changed and that it could have been an option by shareholders to call an EGM. It was quoted that the cost of calling an EGM could amount to £10k and that AY is now drafting a letter to be sent to shareholders explaining the situation to them about how the last accounts were not finalised; that they had now been filed; and that the proposal is for them to be approved within a resolution at the next AGM.

GP stated how new auditors had come in, that basically there had been confusion, and that the auditor had pressured the club for extra money before the books had been released to them. He said he had sought advice from other people and that it had been recommended to him to bring back the firm the company used in the past, Rothman Pantell, and that this had been done. He claimed how the club tried to put things right and SD pointed out to him that the club must have realised that this would happen, how it would give a wrong impression for fans/shareholders to read about this in the newspapers, and why did they not contact someone like Geoff in the first instance? AY acknowledged this and said how he could see that this could be seen as a cover-up but that there had been a lack of communication between the ex financial controller and the auditors.

GP commented on how it was all a bad mistake; that he has put his trust in people that are paid to do a job; that he acknowledges he has to carry the can; that the figures - the loss amount - is the exact same; that he wants to be surrounded by people who know what they are doing; and that he is learning something new every day.

AY said that Rothman are now on the case for the 2006 (May year end) accounts and that they are hopeful of them being signed off and filed at companies house on/by 31st March. GP asked Geoff if he would come in to monitor the accounts/process and he agreed to at the least send in one of his accountants for the day before the end of March. Geoff suggested this so as to avoid any possible conflict of interests.

AY asked if there were anything else required to be known about the accounts and as time was getting on by this stage, Geoff suggested he email specifics to him, as he does have a number of queries, and for any responses to be relayed in due course.

VS asked about the community department and into which company this department comes under and AY said it's the Holdings company. ..." QPR OFFICIAL SITE

BOARDROOM BLUES FAN SITE
For Copy of Accounts and comparisons: at Boardoom Blues
- "Meet the New Accounts, Not the same as the old Accounts"
- "Shareholders' Guide to the New Accounts"
- COMPLETE ACCOUNTS can be viewed here
Boardroom Blues
QPR Report "QPR's Last AGM (in 2006)