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Sunday, July 22, 2007

Past QPR Pronouncements re Club Finances

Some Statements by QPR Chairman Paladini About Past and Future Losses:

See Also some past statements re QPR's ABC Loan

Reports re QPR's Latest set of Accounts and reports on re June AGM Meeting - Accounts and AGM Also Ben Kosky Report of AGM Latest QPR Holdings Accounts (posted on Boardroom Blues)

Timeline re QPR's originally intended Loan From Simon Blitz - Timeline

April 2007 - Fan Consultative Meeting
Accounts update
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...

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 [Dave McIntyre - Posted on Dave Barton's Queens Park Rangers FC Site(www.queensparkrangersfc.com )

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)

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'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

To Get to Full Articles from where these excerpted quotes came from, links here

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