One Year Ago: Club Statement on QPR's Finances and Inaccurate Reporting

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QPR Official Site - Club Statement - March 7, 2006
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 Official Site